Sat, 10th Aug 2019
The trade war between China and the United States is continuing and has hit market sentiments once more, after President Trump said that the U.S. was not ready to make a deal with China.
The Dow Jones slipped by more than 220 points in early trading, as Trump implied that there would not be a deal with China in the near future. While the markets recovered later, the index was still down by 90.75 points at the close of trading. Trump told the press that the coming talks between the US and China could be cancelled.
He said that the government in the US is talking to China, but is not ready to make a deal. He added that the US would not be doing business with the Chinese telecoms company, Huawei.
The wider markets followed the Dow Jones, with the S&P 500 falling by 0.9 percent, and the Nasdaq Composite down by 1.2 percent
America has overtaken Germany as the biggest source of imports for Britain, for the first time in nearly 20 years. Britain’s trade deficit has narrowed by £16 billion, an unexpected change for the second quarter of the year. Other figures showed that imports from the US are up by 14 percent, while imports from Germany fell by 0.1 percent. This marks an opportunity for the government to start discussions with the US regarding a free trade agreement as the deadline for Brexit is approaching.