Market Watch: Global Growth and U.S.-China Trade War

Under the market watch, three of the major U.S. stock indexes plunged around 3% overnight. Aside from that, the blue-chip Dow reported its biggest one-day point drop since October.

Furthermore, woes ascended on global growth following the Sino-U.S. trade conflict claimed more victims ever, with the German economy contracting in June quarter. And also, an absolutely dire set of activity data for July out of China.

On Wednesday, U.S. President Donald Trump appears to bind a U.S. trade deal with China to a humane resolution of the weeks of protests wracking Hong Kong.

On the other side of the market watch, the concerns on global demand took a hard toll on oil prices. Brent crude lost another 44 cents to $59.04 per barrel following a drop of 3% overnight. Also, U.S. crude was last down by 33 cents at $54.90 a barrel.

Then, safe-haven gold rose 0.3% to $1,521.00 an ounce. And this is not far from its highest since April 2013.

Lenovo’s Market Watch

Also, on market watch, Lenovo Group, a Hong Kong-listed computer manufacturer, dropped over 6% on Thursday in Asia. And this happened even though the company showed stronger-than-expected earnings in the quarter, which ended in June.

Moreover, its net profit for the period surpassed the $154 million expectation to $162 million. Then, its revenue was at $12.51 billion, which is in line with expectations.

Even with the positive reports, Lenovo gave a warning that the firm’s outlook will be dubious because of the intensifying trade dispute between the United States and China.

The tech giant stated, “There is a complexity of macro risks arising from ongoing trade negotiations, import tariff changes implemented by countries and challenges alongside geopolitical uncertainties.”

During the week, Trump explained that it would be alright if the scheduled meeting between the two sides in September won’t push through.