Since 6 o’clock the USA raises customs duties on certain Chinese products in the volume of approximately 200 billion dollar in the amount of 25 per cent. Beijing has already announced countermeasures, but gave no details.
Since yesterday, the Chinese Vice Premier Liu He is staying for another round of talks in Washington. While today, the negotiators from both sides come together. US President Donald Trump tried to calm markets on Thursday after receiving a “nice letter” from China’s President Xi Jinping, saying that a deal could be signed later this week.
High Fear Market
On Wall Street, this provided relief: During the course of the day, the Dow Jones was -1.7 percent temporarily dropped to its lowest level since the end of March. The final bell was a discount of 0.5 percent. Similar losses recorded the Nasdaq 100. With the increased nervousness, the fear barometer VIX shot temporarily well above the threshold of 20 percent and thus to annual high.
Safe havens such as bonds are sought: the yield on ten-year US government bonds fell to 2.45 percent, and for the first time since March the yield curve has been back inverse. Swiss Franc and Japanese Yen are popular on the foreign exchange markets. By contrast, gold barely profited most recently and costs $ 1,285. In Asia, the Nikkei narrowly fell into negative territory, while China’s stock exchanges rose by around three percent.
Investors are also worried about excalation in the Iran conflict, not only on the oil market. The US recently increased military and economic pressure, while Tehran in part canceled the nuclear deal. Brent conquered the threshold of $ 70 in Asian trade.
Post remains on course
In Frankfurt, the DAX presents itself as friendly at the beginning, with banks rating the market 0.9 percent higher at 12,090 points in early business. Mostly good news came from Deutsche Post. In the first quarter, the logistics company increased its profits disproportionately to sales. The goals for the current year and 2020 have been confirmed.
In addition, the focus is on the largest IPO of the year on Wall Street: Today, the car broker Uber wants to get started, the issue price was set to $ 45. This puts the issue price at the lower end of the range. The overall rating reaches 80 billion dollars.