Donald Trump is determined to put another $200 billion of tariffs on Chinese goods
US futures are trading lower as investors are highly concerned about Trump’s upcoming decision. The president of the United States, Donald Trump is determined to put another $200 billion of tariffs on Chinese goods. There was some hope last week that the White House may be able to resolve this matter with Beijing more peacefully.
China has made one thing clear for Trump that threats and such behaviour isn’t going to work with the country. There are real chances that the new set of negotiations may never begin. So far, the Chinese government has declined to resume the trade talks because Trump is telling his aid to prepare for the next round of trade tariffs. This is the prime reason that we have seen the stocks tumbled over in Asia and the same momentum is highly likely to continue over in the Europe.
Back in the UK, we are seeing more positivity when it comes to sterling as traders are more optimistic about the Brexit deal. The positive momentum is building and the EU has mulled a new Irish border option and Theresa May is likely to get more support from the two notable pro-Brexit personalities- Liam Fox and Michael Gove.
The British prime minister is also optimistic and is confident that the deal is within reach with the European Union and she is determined to fight in order to achieve her version of Brexit. Her version of Brexit is based on keeping close trading ties to the block and this puts her on a collision path with hardline eurosceptics in her own party. There are strong chances that her version of Brexit could create changes for her job because Boris Johnson is more than likely to ranch up the opposition against her.
The precious metal looks promising once again as the risk off trade is the most famous one on the street. If the US slaps fresh tariffs on China, it is highly likely that we would see another bull run for the gold price. The yellow metal is finding it difficult to hold the level of $1200 for now,
