President Trump anchored the tensions further between the US and China (as if there was not already enough friction between them) on the topic of the trade war. Donald Trump is in full Tit for tat mod, he ordered his department to look for $200 billion worth of Chinese goods for further tariffs at a rate of 10 percent. Investors are nervous because it would surely have another reaction from Beijing. The world’s largest two countries cannot afford to have this kind of attitude as it would have serious impact on the global growth. One of the side should eat their ego and only then this entire conflict can steer itself to some direction for a more suitable solution.
US futures and European markets are trading sharply lower as a result of the trade war. One could say that the trade war is not here yet but one should also think that the moment the word “trade war” came into the play, we started to sail towards uncertainty.
The black gold is out of luck amidst traders as they are pricing in that the OPEC and Russia would increase production. The meeting is due in Vienna on the 22nd June, 2018. The upcoming meeting would be highly interesting and it has a potential to bring higher volatility in the market.