Market future hangs on US-China trade talks: Investor uncertainty keeps stock market stagnant 📉
Persisting uncertainty: Stock exchanges in the United States experiencing a downturn
Headlines are abuzz with news of US-China trade talks scheduled for the weekend. These talks, happening in Switzerland, hold the potential to ease the ongoing trade dispute that's sent shockwaves through the global economy. As optimism remains muted, the Wall Street completed another day with minor drops.
The Dow Jones Industrial Average of blue-chip stocks concluded the trading day 0.3% lower at a hefty 41,249 points. The broader S&P 500 slipped 0.1% to 5,651 points, while the Nasdaq tech exchange stood pat at 17,928 points.
Before the weekend talks ensues, investors await eagerly for signs that the negotiations could potentially put an end to the trade war and alleviate concerns about economic growth. Notably, US President Donald Trump hinted at lower tariffs on Chinese imports, but analysts remained weary. As Michael Matousek, senior trader at US Global Investors, noted, "Whether tariffs are 140% or 80%, the number sounds like a difference, but if there are still 80% tariffs, most people won't buy goods."
A clear example of this unrest is evident in the outcome of the US-UK trade deal from the previous day. While innovation, the deal marks the first of its kind since Trump imposed tariffs last month, many details remain unconfirmed. One critical point still on the table is the base tariff for imports into the US.
Gold and oil prices on the rise 🚀
The market's continued unease was reflected in the price of gold. "Persistent uncertainty regarding tariffs is the primary factor influencing the gold price," stated David Meger, head of metals trading at High Ridge Futures. The precious metal used as a safe haven saw gains of 0.7%, with the troy ounce now valued at $3,327. In the oil market, both North Sea Brent and US WTI crude rose approximately 1.7%, increasing to $63.88 and $60.99 per barrel (159 liters) respectively.
According to Vandana Hari, founder of Vanda Insights, if both parties agree to a series of formal trade talks and gradually reduce high tariffs during negotiations, the oil price could soar an additional $2 to $3 per barrel.
Mixed fortunes for Expedia, Lyft, and Trade Desk
- Despite the uncertainty over US-China trade talks, employment policies in EC countries continue to have a significant impact on the job market, with many companies keeping their hiring decisions on hold until the dialogue between the two countries is resolved.
- The average citizen's financial situation remains uncertain due to the ongoing trade disputes between the US and China, with many choosing to save their money instead of investing in stocks or making big purchases, as the market's volatility is a cause for concern.
- To keep up with the latest developments in the trade talks, some investors and analysts are exchanging information through platforms like WhatsApp, agreeing that keeping abreast of the situation could potentially lead to informed financial decisions as the weekend's discussions unfold.
