Loading Posts...

Mainland Chinese Stocks Fall on Renewed Trade Concerns, Our Views

Mainland Chinese Stocks Fall on Renewed Trade Concerns, Our Views

The story remains as such: The US-China Trade War, and we should treat if for what it is, will continue because these two leaders are winners and they never want to be viewed as giving too much ground. And across the region looking from Tokyo, there are events that cannot be ignored. The Bank of Korea cut rates, a Wall Street Journal article stated that the US-China trade talks hit a wall on added restrictions to Huawei, according to a piece on CNBC, and Australian jobs data showed that expectations for new jobs were too optimistic, so the number created was far below market reality.

So the market performance that we have seen in the past 12 hours has been somewhat weak with the Shanghai Composite declining 0.71%, and the Shenzhen component down 1.0%. Nikkei 225 shares fell 1.25% and Topix faded by 1.38%.

Our Views: We have taken a more bearish stance in Nikkei 225, Topix, and of course the US S&P 500 with the target levels to fade the rally from 2,970 to 3,000 and the Nikkei 224 from 21,500 to 21,700 range. Stocks in China will remain under pressure in our view despite the government pulling the levels of support, underpinning this market. Look for more downside but keep in mind that some of the US economic releases have been stronger-than-expected in the past 48 hours while earning season has, in the first week, delivered solidly on 84% of the corporate reports.



The author didnt add any Information to his profile yet

Classarius is the only data driven news for blockchain, cryptocurrencies and technology from investment professionals.

Disclaimer: We do not provide investment advice or strategies, this article is not intended as such but only to provide you the reader with information. Please conduct your own research before any investment of any kind.

Classiarius Guest Posts
Classiarius allows guests to write articles on blockchain, finance, and analysis on technology, political risks and crpytocurrencies. You may include links to your previous content in your articles. Write Guest posts
Loading Posts...