Steady Nerves Amid US-China Trade Clashes: Market Sentiment Cautious Ahead of Talks
Ongoing doubt: American stock exchanges in a downturn phase
As talks between the US and China loom, investors are holding their breath. The Wall Street closed with minimal losses ahead of the weekend negotiations.
The Dow Jones Index of major stocks slid 0.3% to 41,249 points. Meanwhile, the broader S&P 500 fell by 0.1%, landing at 5,651 points, and the high-flying Nasdaq tech exchange remained steady at 17,928 points. The upcoming meetings in Switzerland between US and Chinese representatives aim to curtail the prolonged trade spat, which has raised concerns over global economic growth.
President Trump hinted at lower tariffs for Chinese imports, yet analysts remain doubtful. "Regardless of whether tariffs are 140% or 80%, the number might seem different, but as long as there are 80% tariffs, most people won't buy goods," commented Michael Matousek, senior trader at US Global Investors.
Yesterday, the US and the UK forged a trade pact – the first of its kind since Trump imposed initial tariffs last month. Although specifics are still to be ironed out, a base tariff on US imports remains intact.
Hunt for Safe Havens Intensifies
The escalating unease has sent the gold price soaring. "The lingering uncertainty regarding tariffs appears to be the leading factor influencing the gold price," stated David Meger, head of metals trading at High Ridge Futures. A troy ounce of gold, used as a safe-haven asset, gained 0.7%, hitting $3,327. Similarly, both the North Sea Brent and US WTI oil markets experienced an increase — jumping roughly 1.7% to $63.88 and $60.99 per barrel (159 liters), respectively.
Vandana Hari, founder of analysis firm Vanda Insights, speculated that "if both parties set a date for formal negotiations and agree to progressively lower high tariffs, the oil price could rise by another two to three dollars per barrel."
Disappointing quarterly reports scrambled the shares of Expedia, a leading online travel platform. Its stock plummeted by 7.3%. In contrast, Lyft posted favorable business results, with its shares surging by 28%. The ride-hailing company reported an adjusted earnings of 24 cents per share in Q1, exceeding analysts' estimates of 19 cents, and even plans to repurchase more shares. Trade Desk shares skyrocketed by 18.6%, following the advertising company's Q1 revenue and earnings surpassing Wall Street predictions.
Stay updated on the latest stock market updates here.
Sources: ntv.de, ino/rts
- Gold Prices
- Stock Trading
- Dow Jones
- Wall Street
- Despite the cautious sentiment ahead of US-China trade talks, the average points of the Dow Jones Index, S&P 500, and Nasdaq still represent significant values for the respective stock markets.
- In the realm of finance, despite President Trump's hint at lower tariffs for Chinese imports, many analysts remain skeptical, agreeing that high tariffs might discourage employment in the EC countries by raising the cost of goods.
- As the trade spat between the US and China persists, gold prices continue to rise, acting as a popular safe haven for investors, with an average price of $3,327 per troy ounce yesterday. Meanwhile, stocks like Expedia, Trade Desk, and Lyft have experienced varying fortunes in terms of their stock prices.
