- President Trump signs the Hong Kong pro-democracy bill.
- Wall Street indices are expected to be under pressure in the upcoming days.
- China says it will retaliate against American meddling in its internal affairs.
- Top online U.S retailers are struggling to keep prices steady ahead of the holiday season.
Amidst the optimism for a trade deal with China, President Trump has signed the Hong Kong bill in favor of the protesters earlier today. In a response on Thursday, China expressed its dissent and stated that it will retaliate against the United States of America. All three of the primary Wall Street indices are expected to be weighed down following the news as investors remain wary of the extent of China’s retaliation.
Wall Street Equity Futures Reported 0.2% To 0.3% Down
S&P500, Dow Jones, and Nasdaq indices which printed record highs last week are expected to lose strength in the upcoming days owing to the quickly rising trade tensions between the two largest economies of the world. The benchmark 10-year German government yield dropped to its lowest since the start of November. The actual impact of the news, as per the experts, will be seen in the U.S markets once they open after Thanksgiving holiday. Equity futures for Wall Street indices, however, were reported 0.2% to 0.3% down on Thursday.
Sources from the forex market have also reported that the safe-haven currency, Yen, sharply gained against the greenback earlier today and climbed out of the six-months lows. FTSE was highlighted to have lost 0.2% on Thursday as the trade-sensitive sectors like tech, and autos extended decline. The tech sector was last seen 0.4% down on Thursday while the autos sector had lost 0.6%.
The FTSE 100 index opened at around 7,430 on Thursday. Within a matter of a few minutes, the index dropped significantly to hit the 7,389 mark. Much of the loss, however, was regained later in the day with the index currently trading at 7,418.
Top Online U.S Retailers Struggling To Keep Prices Steady Ahead Of The Holiday Season
The rising tension between the U.S and China has manifested in the form of rising prices for electronics sold at top U.S online retailers. The prices for holidays products at giants like Amazon and Walmart, however, have remained steady despite the tariff war. Profitero’s strategy and insights senior vice president, Keith Anderson, recently highlighted in a report that while other products have presented a hike of 0.9% in prices ahead of the holiday season, prices for electronics products at top online U.S retail stores are up by 2.3% as compared to that of last year.
Anderson further added that the increment in prices is greater than the average rate of inflation that stood firm at 1.8% this year so far. Inflation in 2018 for the United States of America was noted at 2.4%.