June 24, 2025
US-CHINA TRADE: Rare Earth Approvals Stall and Tariff Woes Mount thumbnail
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US-CHINA TRADE: Rare Earth Approvals Stall and Tariff Woes Mount

Markets Weight Stimulus HOPES AND TRUCE RISKS as Rare Earths and Tech Exports Take Center Stage.”, – WRITE: www.fxempire.com

FX Empire – China Producer Prices However, Cost Savings May Not Translate Into increasted domestic consumption. Retail Sales Rose in May, Up 6.4% Yoy Compared WitH 5.1% in April, But Weak Consumer Sentiment Continutes to Challenge Beijing’s Push for Stronger Domestic Demand. Weak Sentiment Exposures China’s Economy to Us Tariffs and Weak Overseas Demand, Pressing Beijing to Introduce Fresh Stimulus.

Alicia Garcia Herrero also commented on China’s Economy and Potential Stimulus Maneuvers, Stating:

“China Will Likely Continue Its Fiscal-Led Stimulus to Stimulate Growth, But The Will Not Be Sulent to Rebance The Economy Towards Consumption As The Focus is Infrastructors CONSUMPTION REQUIRS The PBOC TO DAKE THE LEAD AND FURTHER LOWER INTEREST RATES.

On June 24, People’s Bank of China Advisor Huang Yiping Reportedly Stated that China’s Q2 GDP Growth Will Likely Exceed 5%. Huang Yiping ALSO SEES ROOM FOR FURTHER FISCAL Policy Expansion. China’s National People’s Congress Standing Committee Convened on June 24. News from China’s Top LegisLature Could Offe R Insights Into Beijing’s Plans to Progress.

Despite Trade Uncertainties, Hong Kong and Mainland China Hold Monthly Gains Hong Kong and Mainland China-Listed Stocks Have Climbed in June, Extending their Gains from May. EASING US-CHINA Trade Tensions and An Iran-Israel Ceasefire Have Fueled Demand for Risk Assets. However, The Main Indexes Remain Below March Highs, With Uncertainty About A US-CHINA TRADE DEAL CAPPING Gains.

In June, Mainland China’s CSI 300 and Shanghai Composite Index Were UP 1.55%and 2.03%, Respectively, While the Hang Seng Index Gained 3.70%.

June’s Gaves Have Reduced the Year-To-Date (YTD) deficit for the CSI 300, Down 0.89%, While the Shanghai Composite Has Ganeded 1.90%. Meanwhile, The Hang Seng Index Has Surged 20.40% YTD, Boosted by Demand for Tech Stocks. The Hang Seng Tech Index Was Up 18.76% YTD, Despite US Restrictions on Tech-Related Exports, OutperForforming The Nasdaq Composite Index (YTD: +1.66%).

Further Progress Toward A Trade Deal May Fuel Demand for Mainland and HK-Listed Stocks. However, Addressing Domestic Demand and China’s Reliance On US Tech Could Be Crucial for Longer Term Trends.

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