Current Stock Market: The Impact of Trade War

For the current stock market, fortunately, U.S. President Donald Trump delayed some tariffs for Chinese imports. However, this does not stop investors from feeling worried because the trade dispute is still far from being resolved.

Aside from that, the never-ending tariff conflict between the United States and China affected the world. It already gave too much damage on global supply chains and slowed economic growth.

In addition to that, in July, China’s growth in industrial output slowed much more than expected to 4.8% compared from a year earlier. At the same time, there was also the latest hint of wavering demand as the U.S. ramps up trade pressure. And since February 2002, the pace of July became the slowest one.

Senior strategist Masahiro Ichikawa said after Trump suspends tariffs, “The markets will remain wary of the tariffs still being implemented come December.”

Ichikawa also explained that the unrest in Hong Kong is not a “main caliber theme” in the market. But still, its negative effect mounted as they have “taken place simultaneously” with improvements in Argentina.

Argentina and Currency Trade

And away from the current stock market, this week, global market jolted due to worries of a potential return to interventionist policies and an extension of possible debt default. And this was after Argentina President Mauricio Macri’s opposition in presidential primaries handed him a trouncing during the weekend.

Meanwhile, in currencies, the safe-haven Japanese yen boosted 0.25% to 206.485 against the dollar. And the weaker-than-expected Chinese economic data backed the view that settling that trade dispute is still a long way off, even with Trump’s delay on some tariffs.

Then, going to volatile trading, the yen withdrew to 106.980 per dollar overnight before finding its footing. The Japanese currency on Monday touched a seven-month peak to almost 105.000

Also, the dollar index was firm at 97.822 against a basket of currencies following its lift to nearly 0.5% the previous day.