U.S. and Chinese officials are set to begin trade negotiations on Monday. Here are seven issues that will be key to making headway
Trade War Fears
Apple cut its sales forecasts for its key end of year period on Wednesday, citing the unforeseen “magnitude” of the economic slowdown in China
Apple stocks tumble after company cuts forecasts for key quarter. Tim Cook cites unforeseen magnitude of economic slowdown in China in a letter to shareholders explaining the change
Total U.S. agricultural export shipments to China for the first 10 months of 2018 fell by 42 percent from a year earlier to about $8.3 billion, according to the U.S. Department of Agriculture.
As fear rises on Wall Street, strategists warn the worst is yet to come. The CBOE Volatility Index jumped above 30, its highest since the major market sell-off in February of this year
“The market’s in no man’s land,” said Peter Boockvar, chief investment strategist at Bleakley Advisory Group. Stocks have broken through the lows of the year, and technicians are scurrying to find the next support levels. On the S&P 500, he said 2,400 is a potential psychological area of support.
StockMarketNews.Today – The U.S. this year has already imposed tariffs on $250 billion in trade with China. Ten percent tariffs on $200 billion in imports that took effect in September are due to increase to 25 percent on Jan. 1. Trump has also threatened to impose tariffs on the remaining goods imports from China, which last year were worth $550 billion.
The sell-off in U.S. stocks picked up steam as mixed corporate earnings and weak housing data fueled anxiety.
StockMarketNews.Today – The S&P 500 Index extended its October rout to 7.8 percent, reducing this year’s gain for the benchmark index to 1 percent. Disappointing earnings from AT&T and Texas Instruments drove declines in the communications.
The easy money may be over. U.S. Company earnings growth is slowing after a bumper start to the year
StockMarketNews.Today – While earnings growth is still high at 22 percent so far this quarter, the amount by which S&P 500 index companies are beating analyst estimates is nearly half of what it was during the first quarter, according to Refinitiv data.
China is planning to sell $3 billion in U.S. dollar bonds this month, wooing foreign investors at a time of heightened trade tensions with the U.S. and turbulence in its own stock market.
StockMarketNews.Today – The offering is coming at a delicate time for the world’s second-largest economy. China’s gross-domestic-product growth is slowing and the pace of investment in factories and public-works projects has cooled this year.
China is being forced to retaliate against the United States in their trade dispute, and U.S. exporters including suppliers of liquefied natural gas would “certainly” be hurt, said Chinese vice commerce minister Wang Shouwen.
StockMarketNews.Today – The United States and China imposed fresh tariffs on each other’s goods on Monday as the world’s two biggest economies showed no signs of backing down from an increasingly bitter trade dispute that is expected to hit global economic growth.
Metal prices were in rally mode Friday as copper hit 12-week highs, shrugging off a strong dollar on easing trade war fears.
StockMarketNews.Today – The United States and China, earlier this week, announced tariffs at a lower rate than many had feared, helping lift sentiment on trade, easing fears escalating trade tensions would dent China’s appetite for metals.