ASIA STOCKS STARTED THE WEEK ON LOWER NOTE ON MONDAY
Asian shares started the week in deep red on Monday, as the trade tension remained backdrop of the trading sentient and sent the yuan slumped to decade lower levels . Japan’s Nikkei is lower by 2.3% to the lowest since early June. Shares in Australia too slipped about 1.5% and South Korea’s KOSPI KS11 tumbled 2.1% to December 2016 levels.
CHINA WILL RETALIATE ON TRUMP TARIFF INTRODUCTION
China will response to the Trump impose of a 10% tariff on a further $300 billion in Chinese imports beginning Sept. 1 on a long list of goods expected to include smart-phones, laptop and clothing. The global market is feared about the probable consequences on the trade and growth propelling the demand for safe haven gold, yen and bonds.
OIL PRICES STRUGGLES TO MAINTAIN ABOVE $55
Oil prices seeks no support from any global news as Sino-US war fuels the concern on the global growth.
EUROPEAN STOCKS SLIDE ON TRADE WAR JITTERS
European shares finished the week with losses on Friday as the investor sentiments were sour after the trade war between the two world’s largest countries escalated The DAX 30 was down by 3.1% which is the lowest close in previous two months, the FTSE 100 edged lower by 2.3% , the CAC 40 was down by 3.6%.
BANK OF ENGLAND SAYS BREXIT EFFECTS ARE MORE DEEP ROOTED EVEN ON ORDERLY EXIT
The Bank of England ( BOE) warns about a probable recession in the Britain’s economy s even if a smooth and orderly Brexit from the European Union negotiated. The Brexit uncertainties along with global backdrop because of the trade conflict between the US and China lead the quarterly economic projections lowered by the bank.
US EQUITY CLOSED AT WORST NOTE ON FRIDAY
U.S. stocks closed in negative trend and would remain volatile as the market is cautious about Trump’s soar tweets over US-China trade tariffs. The Dow Jones Industrial Average lost 0.37% to hit a new 1-month low, while the S&P 500 index lost 0.73%, and the tech-savvy NASDAQ Composite index fell 1.32%.
CHINA’S NEW U.N. ENVOY: BEIJING WILL FIGHT BACK WITH US IF NEEDED
China’s new UN ambassador Zhang said over the weekend that Beijing is ready to settle down and ready to talk to the US about their escalating trade war but “if they want to fight we will fight”, which is not a good sign for the global economy. Further, he added this trade war would impact China’s cooperation with the US and North Korea.
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