Stock Markets Feel the Pressure of the US-China Trade War

The market sentiment went back to negative as investors worried about the impact of a prolonged US-China trade conflict.

Written by: Arslan Butt • Tuesday, May 21, 2019 • 1 min read

The market sentiment went back to negative as investors worried about the impact of a prolonged US-China trade conflict. After semiconductor companies dragged European stock markets down on Monday, shares of Qualcomm, Micron Technology and Broadcom Inc. did the same thing to Wall Street during the US session.

The Chinese government stated that the US had “extravagant expectations” that a trade deal would put an end to their differences. There has been no information forthcoming from both sides on when the next round of talks will be scheduled.

Given Beijing’s harsh tone in recent times, it looks highly unlikely that either side is eager for negotiations to restart. The US has been trying to force China’s hand on “structural” issues such as IP protection, forced technology transfers and more access to Chinese markets for US companies.

China, on its part, continues to maintain that a trade agreement would not be possible so long as the US exerts extreme pressure and makes unreasonable demands.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.