1. On Wednesday, stocks fell all around the world. The day before, “Trump posted a series of messages on Twitter warning that a fragile cease-fire in the trade war between the United States and China could be derailed.” This led to a 3 percent decrease in stocks on Wall Street on Tuesday which led to stocks falling in Asia and Europe the following day.
2. Specifically, stocks dipped .6 in Britain, 1.2 percent in Germany and 1.4 percent in France. Hong Kong, China and Taipei, Taiwan saw a 1.6 decrease in stocks, while Seoul, South Korea and Tokyo, Japan had stocks fall slightly over .5 percent. Chinas currency weakened by .3 percent against the U.S. dollar on Wednesday as well.
3. In the United States, though, stocks are predicted to rise this coming week. Still, On Tuesday, “Investors in the United States sent Treasury yields sharply down,” signaling concerns around growth.
4. Overall, investors have been guessing for the majority of this week. There is large uncertainty in regards to what Trump and President Xi Jinping have agreed to. Without knowing how smoothly trading relations will become between the two economic superpowers, investors have a hard time figuring out the strength of the world economy.
5. According to the New York Times, “The biggest concern plaguing investors is that an extended trade war could erode global growth just as the world’s biggest economies are already starting to cool.”
6. Trump tweeted on Tuesday, “We are either going to have a REAL DEAL with China, or no deal at all — at which point we will be charging major Tariffs against Chinese product being shipped into the United States.” Global stocks will likely continue to fall unless an agreement is reached.