Trade tariff concerns continue to dominate the markets. The short term effects of the tariffs may not be that bad but the longer this episode drags, the more that the cumulative effect starts to take its toll.
Unfortunately, drag it will. Vice Premier Hu has said that China would not compromise on matters of principle and that tariffs should be lifted immediately to allow for a deal. Donald Trump has indicated that he thinks that China is making a bet that he will lose the 2020 elections and that he is prepared to widen out the tariffs to all Chinese goods. A meeting of the minds appears some way off!
DOW futures are currently 300 points off Friday’s closing levels.
UBER’s first day of trading disappointed on Friday. Early calls set a price level of $46-$48 but it didn’t open here, the first trade was at $42 and it settled below this level. All in all, it was a very disappointing IPO and as a barometer of investment sentiment was not inspiring.