The US authorities filed a lawsuit against Facebook - what are the implications?
American equities go down suppressed by trade clashes
On Tuesday, American futures pointed to a dive amid soaring worries about the trade conflict.
The Dow blue chip index headed south by 1.31% being worth 24688.0, the S&P 500 futures sank by 1.10% ending up with 2,749.25. As for the futures of high-tech Nasdaq 100, they slumped by 1.04% demonstrating an outcome of 7200.00.
Tensions in trade relations between China and the United States resumed. The both leading economies keep threating each with further tariffs on imported stuff.
The latest event was Donald Trump’s threat to impose extra tariffs on China’s goods worth $200 billion. Donald Trump stressed that the new American tariffs will come into force in case China denies to change its approach to trading and proceeds with imposing new duties on US goods.
On Friday, US leader uncovered the introduction of a 25% tariff on China’s goods worth approximately $50 billion. Responding to this move, the leading Asian country came up with a 25% tariff of $34 billion on US stuff, including soybeans and vehicles.
The equities of companies in most sectors of the American economy headed south. The equities of Apple inched down by 0.92%, the stocks of Twitter Inc lost 1.74%, while the stocks of General Electric went down by 1.59%. As for the equities of Tesla, they edged down by nearly 1.8%. Additionally, the stocks of JPMorgan decreased by 1.23%, while the stocks of Intel lost 1.32%.
As for the shares of Intuit, the company specializing in software development, they dived by 0.40%.
European equities found themselves in the red zone. France’s CAC 40 declined by 1.03%, Germany’s DAX lost 1.24%, while London's FTSE 100 headed south by 0.41%. As for the European Euro Stoxx 50 index, it tumbled by 1.10%, while the Spanish IBEX 35 lost 0.72%.
Russian media companies are complaining that Youtube and Facebook block them. So sad. Now, what about the stock price?
Have you seen the Tesla stock price? But it has already dropped from that high... will it move up again?
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.