The markets will be centering around what could be the start of a trade war (that I highly unadvise) between the USA and China. On Friday, the USA imposed tariffs on China’s imported tires, which President Barack Obama approved on Friday as a way to stop the loss of American jobs because the cheap tires are threatening American-made tires in an unfair way. China, however, has now accused the USA of violating WTO regulations and wants to convene a WTO meeting on the matter. The USA, however, says they were acting behind a part of China’s WTO membership that says that the USA may rise tariffs to slow Chinese imports to allow America’s industries to adjust. The situation is brewing into what could soon be an Entertainment Tonight special on he said, she said.
The wars, however, have had an impact on the marketplace. All of Asia and Europe are mostly down expect for China’s Shanghai Composite. The unrest and unease of the global marketplace is reflecting poorly in the markets today. All European markets are down over 1%. This story is able to really capture these markets as very little major economic data, earnings, or other leading stories are capturing the market’s attention.
IN PROGRESS
