Jameel Ahmad
AME INFO - July 9, 2018
Confirmation in the early hours on 6 July that President Trump has imposed tariffs on Chinese imports is likely to encourage trade war fears. These fears are likely to continue dictating the attention of investors throughout the second half of 2018. While the UAE and GCC region might appear isolated from the trade tensions between these two super economies, the global market sentiment is being dictated by this headline, which can also have an impact on local markets in the region. Many spectators have taken this news as a clear step towards entering a trade war. The attention of the world has switched to what China might potentially do next after Beijing reacted to the implementation of trade tariffs by accusing the US of starting “the largest trade war in economic history”. Anticipation over how Beijing will react or retaliate against the decision from President Trump is likely to be the next question on the minds of investors. It is widely speculated that Beijing might be considering selling US treasuries, while others expect authorities to deliberately devalue the Chinese Yuan.
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