“Trade Euphoria Fades As Early Gains in Hong Kong, China Stocks Fail to Hold Ground. Vague Terms and Tech Silence Cloud Outlook.”, – WRITE: www.fxempire.com
Economists Question of the Deal’s Crediiness Global Markets Initially Welcomed The Diplomatic Tone and the Prospect of Continued Discussions Between the Two Leaders. However, Economists’ Reaction to Trump’s Remarks Were Less Optimistic.
Peter Schiff, Chief Economist and Global Strategist at Europe Pacific Asset Management, Remarked:
“WITH REGARD TO HIS DEAL WITH China, Trump is Boasting that ‘We Are Getting A Total of 55 Per Cent Cent Tariffs, China Is Getting 10 Per Cent.’ But ‘We Are Getting’ Really Means ‘We Are Paying.’ This Tax Hike Meanse Chinese Goods Will Be 55% More Expensive For Americans Who Buy Them. ”
More Expensive Goods from China and Cheaper Goods from the US May Tilt the Supple-Demand Balance in Favor of US GOODS. However, The Reality Is That Tariffs On Chinese Goods Could Drive US Inflation Highher, Impacting Fed Rate Cuts Bets and Potentilly The US Economy.
Brian Tycangco, Editor at Stansberry Research, Highlighted the One-Sided Nature of the Agreement, Stating:
“Little Coming Out of the US Side Makes Sense. China Agreeing to 55% Tariffs and Giving Into Us Rare Earth Demands Without Really Getting Much. They (China) Had. Make Sense. Least Get Through 24 Hours FIRS BEFORE SELF-PRESTRUCTING HERE? ”
Tycangco Also Noted Beijing’s Muted Respense, Suggesting The Agreement Remains Preliminary and that Longer Negotias Arely.
Trade Deal Euphoria Fades As Markets Dip On Thursday, June 12, Hong Kong and Mainland China Markets Failed to Extend Gaves From The Previous Day. The CSI 300 and the Shanghai Composite Fell 0.37% and 0.21% in Early Trading, While the Hang Seng Index Droped 0.65%.
Despite the agroment from Two Days of Talks, The Lack of Substance Left Investors in Limbo. US-CHINA TRADE TALKS APPEAR SET TO Continue Fueling Market Sentiment.