US & China Trade Tensions are increasing
- US may impose sanction on China if Beijing imposes national security law that will result in more control on Hong Kong.
- This will have knee jerk reaction in stock markets, as trade tensions will increase further.
- Japan lifted State emergency from corona virus issue, lifted their indices as economic activities will start again.
- US stocks have a positive last week due to hope of corona virus vaccine soon.
US & China trade tensions
- Wall Street ended mix as the investor fears that trade tension between US & China will increase. On Sunday National Security Advisor Robert O’Brien hinted that US government may impose a sanction on China if Beijing imposes national security law that will result in more control on Hong Kong. At present, Hong Kong is governed by One country, two systems. This gives them greater freedom from special administrative region from rest of China. Now China is planning to put more restriction on this. That is why on Friday, a document is submitted in China’s parliament to improve the Hong Kong legal system.
- This will create more trade tensions between US & China as US is against all of this.
- Japan has lifted State emergency may lift the Asian stocks this morning.
- American biotech company Novavax said that it started first human virus study to come out with corona virus vaccine. Many companies are working on corona virus vaccine, a key positive for the development and fight against pandemic.
- Dow Jones Industrial Average declined by -8.96 points, or -0.037%, close at 24,465.16.
- The S&P 500 seen upside of 6.94 points, or 0.24%, ends at 2,955.45.
- Nasdaq Composite Index increased by 39.71 points, or 0.43%, close at 9,324.59.
Asian Markets In Morning
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Nifty 50 outlook for the day.
- SGX Nifty is suggesting that Indian Markets will start at around 9150 level. Today strategy is to look to buy the market (Nifty Future) in case you get any rally. Long the market at 9100-9125 level and look for target 9200 level. Stop loss at 8960 level
- Read this article to build long term portfolio of Nifty 50 stocks: