The Trade war is damaging both US and China
The unexpected fall in the U.S. production and the recent Apple’s selling downfall in China are the newest indications that the President’s Trump administration’s trade conflict with the other economic giant China it’s a weak up call that could improve the relations and lead it to an end to the conflict.
China’s economy has been bleeding, but Apple’s announcement on Wednesday that its iPhone sales in China dropped in November gave additional evidence that the U.S. trade war is damaging U.S. companies and possibly the domestic economy. Apple’s report, ISM manufacturing data Thursday dropped to the lowest in more than two years. Michael Gapen, chief U.S. economist at Barclays said
“This is probably one of the first data points that indicate things domestically in the U.S. economy might be slowing a bit,”
Gold hit one year highs
Spot gold moved up 0.2% at $1,296.30 per ounce. Earlier reached $1,298.40, and that was its greatest touch since last June. On Friday Gold scored its highest point in a year while volatile stock markets on the back of soft U.S. data increased fears of global economic retardation. This drove the popular safe-haven metal to a potential third straight weekly profit. Gold has risen over 1% so far this week.
While U.S. gold futures were up about 0.5% at $1,299.50 per ounce.
Sugandha Sachdeva, vice-president of metals, energy and currency research, Religare Broking Ltd said
“Concerns about tepid global economic growth and volatility in risk assets is likely to keep the safe-haven asset – gold – in flavor,”
Oil is stable for now
On Friday Oil prices were stable after China announced that it would continue the trade talks with the US this month. The talks now are pointed to resolve the trade conflicts between the two world’s largest economies.
Crude prices had earlier dropped after the US fell like the most other significant economies into a production downturn. International Brent crude futures were near to their last close, at $55.90 a barrel while the
U.S. West Texas Intermediate crude oil futures were at $47.14 per barrel.
Yen soften today
On Friday the safe-haven yen declined against the popular greenback on expectations for the future U.S.-China trade discussions that could end with a positive resolution. Although the general market sentiment remained low due to concerns over decreasing global growth.
The Market opinion went up after China verified that trade talks with the US will be held at Beijing on Jan. 7-8. Trade anxieties between the counties had confused the financial markets for most of last year. The yen declined 0.5% to 108.17 while more risky currencies like the AUD increased by 0.2% to $0.7019.