Australia Feels The Hit Of US China Trade War
Donald Trump’s insensitivity is now affecting the Australian market too. A message about the US-China trade war’s fate hanging by the outcome at the NATO Summit has sent fear waves across the world. Trump has further indicated that he might not decide on the fate of the trade agreement until the 2020 elections slated for February in the United States.
The world market has hit choppy waters and Australia is not left out of this turmoil.
The share market in Australia fell by almost 1 percent at the open for the second day in a row after this negative lead from overseas.
The Aussie dollar has felt a marginal tremor with the US cents, buying 68.51 US cents from 68.46 US cents on Tuesday. Unfortunately, every sector has seen a low start in a day, with telecommunications shares recording the smallest losses at 0.52 percent.
Trump doesn’t seem to be in a hurry over closure and has left each and every business entity insecure and jittery over the next few months. US stocks have reportedly fallen sharply after Trump’s comments — which have already cast doubts over the potential for a trade deal with China this year. Trump is also looking as if he is in the mood to pick a brawl with France as he threatens to impose tariffs on French goods. The proposed tariffs amount to US$2.4 billion, a childish retaliation for a tax on global tech giants including Google, Amazon, and Facebook.
The threat has been extended to steel and aluminum from Argentina and Brazil.
Technology stocks have plunged. The sector is highly sensitive to twists in the trade dispute because many of the companies rely on China for sales and supply chains. Apple slumped 2.5 percent and Intel fell 2.6 percent.
Japan’s Nikkei also pulled back into negative territory in the wake of the Wall Street sell-off.
Investors had been hoping for some respite from the whole year of economic turmoil, or at least enough progress to stave off new US tariffs on Chinese goods, including smartphones and laptops, scheduled to start December 15.
Australian shares are poised to follow Wall Street lowering pattern.
The world market has hit choppy waters and Australia is not left out of this turmoil.
The share market in Australia fell by almost 1 percent at the open for the second day in a row after this negative lead from overseas.
The Aussie dollar has felt a marginal tremor with the US cents, buying 68.51 US cents from 68.46 US cents on Tuesday. Unfortunately, every sector has seen a low start in a day, with telecommunications shares recording the smallest losses at 0.52 percent.
Trump doesn’t seem to be in a hurry over closure and has left each and every business entity insecure and jittery over the next few months. US stocks have reportedly fallen sharply after Trump’s comments — which have already cast doubts over the potential for a trade deal with China this year. Trump is also looking as if he is in the mood to pick a brawl with France as he threatens to impose tariffs on French goods. The proposed tariffs amount to US$2.4 billion, a childish retaliation for a tax on global tech giants including Google, Amazon, and Facebook.
The threat has been extended to steel and aluminum from Argentina and Brazil.
Technology stocks have plunged. The sector is highly sensitive to twists in the trade dispute because many of the companies rely on China for sales and supply chains. Apple slumped 2.5 percent and Intel fell 2.6 percent.
Japan’s Nikkei also pulled back into negative territory in the wake of the Wall Street sell-off.
Investors had been hoping for some respite from the whole year of economic turmoil, or at least enough progress to stave off new US tariffs on Chinese goods, including smartphones and laptops, scheduled to start December 15.
Australian shares are poised to follow Wall Street lowering pattern.
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