Trade conflict between China and the United States influencing markets

Wealth

Conflicts between US & China influencing markets

In the past week, global markets remained strained under the current uncertainty brought about by the trade conflict between China and the United States.

In the past week, global markets remained strained under the current uncertainty brought about by the trade conflict between China and the United States.

 

With expectations of a near-term resolution of the US-China trade conflict low, the skirmish appears to be entering a more drawn-out phase. US president Donald Trump described the disagreement between the world’s two largest economies as a “little squabble” and said he expects a fruitful meeting with China’s president Xi Jinping at the G20 summit in late June. According to Trump, he has not yet decided whether to impose a 25% tariff on the balance of China’s exports to the US after last week hiking levies on exports amounting to $200 billion. China retaliated by announcing it will hike existing 5% to 10% tariffs to between 10% and 25% on 1 June, while exempting commercial aircraft and crude oil.

 

Polling in advance of next Thursday’s European Parliament elections in the United Kingdom showed Prime Minister Theresa May’s Conservative Party falling to fifth place, according to some polls. The Brexit Party, formed just weeks ago and led by Nigel Farage, leads in the polling. While populist parties are expected to gain representation in next week’s European Parliament elections, they are expected to fall well short of achieving a majority.

 

Locally, markets performed negative in line with global markets. All eyes will be on President Ramaphosa when he announces his new cabinet in the coming week. Investors will be looking for a cabinet that can drive economic growth and give stable economic direction to the sixth democratic parliament. Economic growth is crucial to turn the tide of job losses, especially with the latest numbers from Statistics SA coming in at around 27.6% of the population unemployed. This is the worst number in 15 years.

 

The new cabinet announcement is expected on either 26 or 27 May.

 

Kind regards,

 

SECURITAS – Wealth Management






















Market data provided by I-Net | News article provided by Securitas with 4D Wealth

Fanie Wasserman, B. Com (Hons)(UJ), PDFP (UOVS), CFP®fanie@securitas.co.za
Johan Steyn, RFP®, Cell. 082 680 9510, johan@securitas.co.za
Albert van der LindeB. Com (US), B. Com (Hons)(UP), Cell. 076 087 3084, albert@securitas.co.za
Hannes Bresler, CFP®, B. Com (Hons)(UJ), Pr. Tech Eng, Cell. 082 823 7973, hannes@securitas.co.za
Michelle Kleinhans, 082 850 3092, michelle.kleinhans@securitas.co.za