“Consumer expenses will largely depend on the stability of the job market, Goldman Sachs estimates that 16 million workers, more than 2% labor force, may be exposed to exports bound to the US.”
Increasing stress: Business talks and tariffs danger
April Caxin PMI survey enhances two important concerns. If no progress is made, firstly, the US-China trade talks in China may lack leviation. Second, President Trump may increase the tariff to win concessions from Beijing. However, signs suggest that China is not easily likely to yield, indicating growing stress between the two powers.
On Monday, May 5, President Trump proposed a 100% tariff on foreign films. However, there were signs of optimism. Trump allegedly stated that China wants a deal, while Treasury Secretary Scott Besant expressed confidence in the upcoming talks.
Hong Kong and mainland market increased in holiday trading
Equity markets of the mainland China resumed trade for a mixed background of economic data and trade development on Tuesday, 6 May. The CSI 300 increased by 0.85%, while the Shanghai Composite Index increased by 0.84% in the morning trading.
Gaming shares ralled as Chinese tourists traveling to Macau, Las Vegas in Asia, allegedly increased by 40.8% year-on-year during the May Day holiday. Data shows that consumers hope that Beijing can reduce tariff risk with fresh stimulation.
Hong Kong’s Hang Seng index also increased by 0.81% in the morning season. In contrast, the NASDAQ Composite Index fell 0.74% overnight, causing the loss of year-on-year to 7.59%, which was a large extent in compared to the decline of 3.36% of CSI 300.
