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3.12 - there are new trade tariffs in play

3.12.2019

 

It seems that we are never going to be able to trade normally, at least not until Donald Trump is sitting in the White House. It becomes impossible to predict what will happen next as Trump, in his own unpredictable manner is painting USA in a very bad color for the rest of the world and the only thing we can do is wait for him to leave office for good.

 

So, what happened this time? As you all know, trade talks with China are still ongoing. It seems that they are never going to end, but in reality it is a long process – eliminating trade deficit between two biggest economies of the world. So, it seems natural to us, that the talks would take this long to conclude. But, Trump seeing that tariffs were most likely to be lifted soon has slapped trade tariffs on other countries – this time on Brazil and Argentina.

 

According to Reuters ‘U.S. President Donald Trump ambushed Brazil and Argentina on Monday, announcing tariffs on U.S. steel and aluminum imports from the two countries in a measure that shocked South American officials and left them scrambling for answers.’ So, no one understands what is going on and what why it is going on. And it is not all. Americans also give 100 percent guarantee that soon French Champagne, handbags and cheese are going to get slapped with tariffs as well. This means that the second strongest economy of the EU is going to take a hit.

 

Of course, market couldn’t help but react to this news differently – we can see that the major currencies are growing against the greenback or fighting the growth. Asian markets drop as Trump brought even more doubts to the perspective of trade talks. It is hard to predict and understand what is going to happen next, but one thing is for sure – today is one of the worst days for USD.

 

Here is what new tariffs caused in the markets:

 

Topix lost 0.5 percent.

Kospi declined 0.4 percent.

Shanghai Composite was barely changed.

Hang Seng from Hong Kong decreased 0.25 percent.

S&P 500 futures added 0.2 percent.

Euro grew 0.5 percent - $1.1073.

Pound added 0.2 percent - $1.2941.

Yen grew 0.4 percent – 109.17 per dollar.

Canadian dollar was flat - $1.3302.

Tesla grew 1.5 percent - $334.87.

Apple decreased 1.2 percent - $264.16.

Facebook lost 1 percent – $199.7.

Amazon decreased 1.1 percent - $1781.6 per share.

Google declined 1.15 percent - $1289.92.

WTI increased by 0.4 percent - $56.15 per barrel.

Brent added 0.15 percent - $61.02 per barrel.

Gold dropped 0.1 percent - $1460.5 per ounce.

Silver was barely moved - $16.88 per ounce.

Platinum didn’t change at all – $896.28.