Tariff and Financial Fall: Who will blink first?
The deadlock has started taking a toll on economic activity. The host Jeffrey snider of the Eurodolar University Channel commented on the effect of the tariff, They said,
“For months, people have thought what the real impact of tariffs and business restrictions will be. Now we are starting to see it – and the initial signs are worse than expected.”
The snider cited major economic indicators indicating a major global economic recession:
“What is happening in the global economy here: American imports from China have fallen by 64%. Global container shipment is being canceled in record numbers. South Korean export bus +5.5% to -5.2% – Fed manufacturing orders in a month crashed 75 points since January. LEI of Conference Board posted its 23rd drop in just 25 months.”
Despite weak American figures, China suggests economic flexibility from economic data. Remedies for stimulation of Beijing are seen receiving traction. In particular, retail sales in March broke from 5.9% year-on-year in March after 4% in January and February increased, with unemployment from 5.4% to 5.2% in March.
A strict labor market can potentially promote consumer confidence, promote domestic consumption, is important for pushing a consumption-lower economy. When successful, this infection can reduce the impact of American tariffs and increase China’s profit in business talks.
“In my opinion, Trump first blinks the eyelid,” Alicia Garcia Heerro said, “Natixis Asia Pacific’s chief economist, forecasting an American concession.”
US-Hong Kongs deviations on market tariffs
The market trends reflect tariffs and investors towards possible impacts on the US and China economies. On April 21, the US markets faced heavy sales as US President Trump fulfilled concerns about Fed independence.
Fed Chair Powell has recently warned that the tariff growth can slow down and increase prices more, potentially delayed the fed rate cut. The lack of policy support leaves the American economy weak while Beijing considers fresh excitement measures to increase domestic demand and consumption.
Monday’s cell-off left the Nasdaq Composite Index down 17.8% year-on (YTD). In contrast, the Hang Seng Index has obtained 6.43% YTD, while the CSI 300 is a relatively modest 3.69% below, which is recovering on 7 April.
Stanberry Research Editor and analyst Brian Tikangko recently commented on market trends, said:
“Hong Kong’s major index is still rally today even after the major loss of Wall Street. Dicouling takes many forms. It can be the size of the coming things if the seeding is capable of maintaining development through stimulation and focuses on keeping things stable at home.”
