Trade wars are intensifying between the United States and China, leading Asian markets to hit a six-month low. China’s stocks are taking the brunt…
Trade wars are intensifying between the United States and China, leading Asian markets to hit a six-month low. China’s stocks are taking the brunt of the tension internationally, although European markets may be hit harder in coming weeks on new threats of tariffs against the auto industry.
China’s FXI ETF has suffered eleven sessions of losses, hitting a milestone that the ETF hasn’t hit since 2012. Since the market’s high on January 26, the ETF has fallen 19% through June 22,2018.
China has responded with tariffs of their own and threats of additional tariffs every time Washington threatens tariffs. The war of words, as many outlets are calling it, is a war that China has shown they will take part in without fear for the short-term economic impact that will follow.
Traders remain concerned that the trade wars will start to spill over into other countries.
Analysts are suggesting that if China’s market moves into bear territory, trading in the United States will feel negative impacts, too.
Trade wars will hurt both countries equally, and increased threats of new tariffs out of the United States adds to the expectation that markets will become pressured in the coming months.
