The
decision by the U.S. administration is expected to be taken on Friday and China
is expected to retaliate immediately. These tariffs will not take investors by
surprise as they have had sufficient time to price them in; given that these
measures are considered only a small portion of the U.S.- China trade’s value,
the impact on growth and corporate earnings will be minimal.
The
critical question markets need an answer on is - where is this trade war
heading towards? President Donald Trump
had threatened to impose a further $200 billion in tariffs on Chinese imports,
which China will respond to in equal measure. If such measures are implemented,
it will certainly lead to a meltdown in global equities, emerging markets
currencies and debt. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
With the current environment of uncertainty, expect risk-averse behavior to
continue in the coming weeks.
Away
from the political trade tensions, traders will be looking closely at the Fed
minutes scheduled for release later today. In his last press conference, Fed
Chairman Jerome Powell was optimistic about the U.S.’s economic performance. He
expected gradual increases in the federal funds to resume, given the low
unemployment levels and accelerating inflation.
However,
investors are keen to know whether the imposition of trade tariffs and similar
reactions from trading partners will threaten his outlook. On a different note,
the dollar has appreciated 6.8% since its February lows. Such strength is expected
to have a negative impact on price levels and exports. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
Meanwhile, the yield curve has continued to flatten over the past several
months, increasing the risk of a recession. These factors have been ignored by
the Fed so far, so today we will get to know whether any of these risks will
hinder the Fed’s policy path, and whether the dollar will move accordingly.
On the
data front, the U.S. ADP employment report is expected to show that 190
thousand jobs have been added to the economy, while the ISM non-manufacturing
PMI for June is anticipated to retreat slightly to 58.3, down from 58.6 in the
previous month.
Have you heard this? Many
Nigerian exporters have been defrauded of huge amount of money in the process
of exporting commodities to foreign countries. Do you know why? They were not
trained on export operations, management, documentations and the best methods
of payment in export trade. This is terrible!!! Nigerians cannot continue to
lose money to foreigners in the course of export business. Exporters, why don’t
you get a practical manual that teaches the stages of export trade from
processing and packaging of commodities to receipt of payment by the foreign
buyers. It teaches export operations, export management, export documentations
and methods of payment in export trade? It is a contemporary step-by-step guide
to export trade. It tells all the contemporary dynamics in export trade. To get
it, click on the link below:
No comments:
Post a Comment