Global factory surge speeds down due to US-China trade clashes

Global factory surge speeds down due to US-China trade clashes

In July, factory surge speeded down around the globe, raising worries as for the global economic outlook because an escalating trade war between China and the USA affected the global economy.

Global economic activity is still firm, although it has already passed its maximum, according to market experts surveyed by Reuters in July. They actually expect protectionist policies on trade that don’t demonstrate any indications of relief to tap the brakes.

However, decelerating surge, diving confidence as well as trade war worries won’t probably deter key financial institutions from giving up their ultra-loose monetary policies activated during the last financial downtime.

Surge is still resilient. Wages and inflation go up, while unemployment rates happen to be low. All of this gives major banks grounds to proceed with tightening, as some financial analysts pointed out.  

The previous month, the United States and China slapped tit-for-tat duties on $34 billion of each other's products and another round of duties on $16 billion is anticipated to kick in August.

According to some sources, the current US presidential administration is braced for slapping 25% duties on a further $200 billion of imports, in contrast with an initial proposal of 10%. Trump’s threat of tariffs on the entire $500 billion worth of Chinese products is still actual.

The Chinese government has promised equal retaliation. However, this Asian country imports approximately $130 billion of American products.

On Wednesday, world equities headed south and the evergreen buck rallied on worries of an approaching escalation in the US-China trade conflict.

In America, surge is anticipated to speed down a bit, although remain firm enough for the Fed to remain on track for two rate lifts in 2018.

European factory surge was still sluggish in July, while Asian manufacturers demonstrated a loss of momentum.

Similar

Popular

Asian shares tumble with Japan markets shut

On Monday, stocks in Asia declined with markets in Japan unavailable for a holiday and traders watching oilfield-related stocks after a bankruptcy filing by Singapore's Ezra Holdings…

Greenback surges as yields soar

On Friday, the evergreen buck added against the Japanese yen and euro, drifting away from recent minimums, though revenues were capped as traders focused on a showdown between Donald Trump and members of his own party as for a fresh healthcare bill…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera