The Trump administration is getting ready to slap tariffs on Chinese goods today. The Chinese government has vowed to initiate counter-tariffs following any such move by the US government. The US has also declared its willingness to add more tariffs. A tit-for-tat trade dispute has the potential to spin-off into a full-on trade war.
Despite this, Asian stock markets are climbing today. Some of the notable moves are …
- The Shanghai Composite Index is up 0.49%;
- Japan’s NIKKEI 500 Index rose 0.86%;
- Hong Kong’s Hang Seng Index climbed 0.47%;
- South Korea’s KOSPI Index moved up 0.68%;
- India’s SENSEX rose 0.39%.
Part of the rise in Asian markets is a rebound from yesterday’s fall. Investors should be careful that this isn’t a dead cat bounce.
Pre-Market: The US and Europe Trade Sideways as Investors Wait for More News
Over in Europe and the US, investors are taking a wait and see approach. Fear of negative trade dispute developments are somewhat offset by expectations of a strong jobs report.
On top of that, yesterday’s Federal Reserve minutes were relatively dovish. This provided some comfort to investors who are afraid that the Fed may raise interest rates too fast.
European shares are trading sideways early on:
- London’s FTSE Index is down marginally by 0.04%;
- The German DAX Index is up 0.16%;
- The Frendh CAC 40 Index rose 0.19%.
US futures are also struggling to find direction. S&P 500 and NASDAQ futures are both down about 0.1%.
Investors sentiment could swing wildy today as the potential for a devastating trade war become clearer. Investors should remain vigilant to start the day.