What the US-China trade war is all about?
It all started with President Donald Trump imposing tariffs and other trade barriers on China with the goal of forcing them to make changes to what the U.S claims being unfair trade practices. The trade war has brought struggles for farmers, manufacturers and higher prices for consumers but traders around the world have been able to capitalise on volatility brought in the stocks, currency and commodity markets by the US-China trade war.
The situation in the financial markets ahead of the negotiations
The U.S. and Chinese negotiators are scheduled to begin the 13th round of talks Thursday aimed at ending a 15-month trade war that is worrying global investors and weighing on the world economy. At the time of writing, major USD currency pairs were as follows:
The EUR was up by 0.10% to 1.0982, Pound was also up but by 0.06% to $1.2213 and Brent Crude fell by 0.2% to $52.48 per barrel.
As the negotiations take place it will be interesting to watch how these markets react. But one thing is sure that volatility will be there as the world’s two largest economies are not expected to help end the trade war between them, adding to anxieties about the global economy.