The market sentiment is mixed. Let’s look at most interesting movements on the market today.
China prepares retaliatory duties on American imports
China is about to uncover a list of retaliatory duties on American exports to China with the aim countering an expected announcement from America of proposed new duties on China’s imports, as the Global Times informed on Wednesday.
The Chinese list is going to target a huge number of major American imports to this Asian country, as the English-language editorial disclosed.
Trade clashes between the two nations sparked the previous week after Donald Trump imposed duties on aluminum and steel imports and also revealed plans for duties on $60 billion of China’s goods.
Alarm over a probable trade conflict between the world's two leading economies has cooled financial markets. It’s due to the fact market participants anticipated negative consequences if trade barriers are lifted because of Trump's bid to diminish the American deficit with China.
Financial markets are currently awaiting the United States to have a list of Chinese products unveiled, which could be targeted with extra duties after an American inquiry accusing China of unfair trade and intellectual property theft.
Compared to China's list, the American one hurts itself more than this Asian country. It’s obvious that the tougher the move, the greater the impact on the United States, as the Global Times revealed in its editorial.
The tabloid outlet stressed that it’s going to deliver a tough blow to the United States wielding the stick of trade conflict in the hawkish way. It will make the United States pay a price for its irrational trade policy toward the world’s number two economy.
Besides this, the Global Times told that the United States turned to be naive to think it could urge China to agree to their fierce demands because China's economy is steady and firm. What’s more – China has successfully endured such hits from previous US presidential administrations.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.