Trump orders to ban U.S. transactions with Tencent and ByteDance
Yesterday the President of the United States Donald Trump announced executive orders that are designed to prevent U.S. transactions with Chinese tech companies ByteDance and Tencent.
Tencent controls the Chinese messaging application called WeChat, and ByteDance which is based in China is also the parent firm of the internationally successful video distributing application TikTok.
The prohibition will start in 45 days and may spark more tensions between the U.S. and China.
While the reason for the prohibition continues to remain unclear, the executive orders after 45 days, will be under prohibition according to the secretary of Commerce Wilbur Ross. President Trump stated that the application further captures private data of Chinese nationals visiting the U.S. He said WeChat “automatically captures vast swaths of information from its users. This data collection threatens to allow the Chinese Communist Party access to Americans’ personal and proprietary information.”
U.S stock futures registered a drop
Futures attached to major U.S. equity averages exchanged in negative areas while U.S.-China tensions continue to rise. The late moves occurred following U.S. President Donald Trump yesterday’s announcement of executive orders to approach “the threat posed” by Chinese apps TikTok and WeChat. Dow Jones Industrial Average futures slid approximately 100 points. S&P 500 futures and the Nasdaq 100 futures too exchanged in negative area.
Oil fell due to uncertainty
Oil prices fell today, extending their declines from the previous trading session, due to concerns that fuel requests may fall as coronavirus cases return, and while discussions are postponed in the United States on a new incentive deal. U.S. West Texas Intermediate (WTI) crude futures slid 2 cents to $41.93 a barrel while Brent crude dropped 6 cents, to $45.03.
Gold new record top
Gold climbed a new record top today and established its momentum heading towards its ninth straight weekly increase, while demand was promoted by a weaker greenback. Spot gold gained 0.3% at $2,068.32 per ounce having scored a record top of $2,072.50 in early Asian trade.
The above content is considered to be market commentary information and shall not be perceived as independent investment research or investment advice.