Frictions between the US and China. The stock exchanges have let us know what they think about it
Let us recall that the US president first announced on Friday that he saw no reason to meet with Chinese leader Xi Jinping due to the export restrictions on rare earth metals announced by China. He also threatened to introduce new, higher tariffs on Chinese goods.
Then the Chinese Ministry of Commerce accused the US of applying double standards. There were words about harming Chinese interests and undermining the atmosphere of economic and trade talks.
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In response, the American administration signaled that the United States was open to an agreement with China. President Trump announced that he had not canceled his meeting with Chinese leader Xi Jinping, and wrote on the Truth Social platform: “don't worry about China, everything will be fine!”
Market analysts indicate that this looks like a phase US-China “pre-transaction” negotiations.
Sparks fly between the US and China. Stock markets in Asia decline
How are stock markets reacting? In Japan, Monday is a day off, and on Friday the Nikkei 225 fell by 1 percent and the Topix fell by 1.85 percent.
In China, the SCI index fell by 0.5% on Monday, and the CSI 300 – by 0.94%. The Hang Seng from Hong Kong was the most in decline, losing 2.5 percent in value.
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In South Korea, the KOSPI index will lose 0.9 percent, in Taiwan TAIEX dropped by 1.4 percent, and in India, the Sensex was down 0.4 percent.
You can see that the sentiment on the markets in Asia is very negative after tensions in trade relations between the US and China sharply increased.
Oil prices are rising
Crude oil is gaining on commodity exchanges. A barrel of West Texas Intermediate for November delivery costs $59.79 in New York. — by 1.49 percent more than before the weekend.
The European equivalent of Brent on the London Stock Exchange is valued at $63.66. per barrel. This oil costs 1.48%. more than on Friday. It is worth recalling that just before the weekend, oil dropped by 3.8%.
