US-Sino trade war hits risky assets hard: Angel Broking

Views of Ms. Kaynat Chainwala (Research Analyst- Base Metals, Angel Commodities Broking):

"Global markets were taken aback after tensions intensified between the two superpowers, the US and China, as bold trade barriers were imposed by the US on China, sparking retaliation from the mainland nation. Tensions between the US and China touched a new peak on Friday after the US President announced a 25 percent tariff on $US50 billions of goods from China and warned of further levies in case of retaliation. The first wave of tariffs to cover $34 billion of goods will take effect from July 6.

Despite the threat, Chinese government was quick to react and reciprocated with duties of same scale and intensity and due to take effect on the same date on 545 US products including soybeans, electric cars, orange juice, whiskey, salmon and cigars.

As a result, broader negative market sentiments hit riskier assets and investors rushed to safe haven. Base metals and crude oil were not spared either and witnessed losses of 2-4 percent in Friday's session."

Source : Equity Bulls

Keywords