Share prices fluctuated in Asian markets at the beginning of the week while investors focused on the development between China and the United States dispute. President Donald Trump and Xi Jinping planned a meeting at the G20 summit in Osaka, Japan later this week.
The major concern in the market is still the trade war between the United States and China. Experts said this has a significant impact on oil trading such as those linked with WOT ASIA. Ever since Trump said he plans to meet with Xi Jinping, most of the stock market has rebounded, although Wall Street completed a landmark week in Friday’s pessimism, as the postponement pushed the stock market lower and continued to rise for four consecutive days.
On Friday, June 21st, the United States reported the blacklisting of five Chinese organizations linked to supercomputing with applications that are related to the military and said that national security is a reason to deny that its Asian geopolitical rivals have access to key U.S. technologies.
The United States Department of Commerce’s move may mess with negotiations with Xi Jinping which is targeted to reduce tariff conflicts between the two largest economies in the world.
The U.S. Dept of Commerce Announced Five Blacklisted Organizations
The five reported blacklisted organizations in the apparent entity list include Sugon, a supercomputer manufacturer that relies heavily on U.S. suppliers Nvidia, Advanced Micro Devices, and Intel.
The remaining four in the list are three branches of Shuguang and Wuxi Jiangnan Institute of Computing Technology. The Department of Commerce head stated that their activities “have violated U.S. national security and foreign policy interests.”
Analysts said the most recent move has caused market sentiment to be sluggish.
IG’s Jingyi Pan said in a comment that the Trump administration’s move which further blacklisted five Chinese technology companies before the G20 meeting may not be the best news of the market’s sentiment about U.S.-China trade relations.
Wall Street concluded a milestone week after a pessimistic closing on Friday, after a series of short-selling stocks fell, it has resulted in ending the four-day market with a winning streak.
Despite the fact that the loss was not large, the market continued to rise for the third consecutive week, and the benchmark S&P 500 index was hovering near a record high a day ago.
Small company stocks performed worse than the other markets. So far this month, the major U.S. stock indexes have risen by over 7%, and this year’s increase has remained above 14%.
The Federal Reserve’s statement this month shows that the central bank is ready to lower interest rates in answer to the worldwide economic collapse, and investors were reassured. Simultaneously, traders are still worried that if the economic slowdown triggers the Fed to reduce interest rates, corporate profits could possibly be affected.
Regardless, investors hope that the upcoming meeting between Trump and Xi will result to better trading results and contribute to economic growth.