The stock markets today are on the downside in the United States. The tech-heavy Nasdaq 100 index is among the biggest losers, followed by the S&P 500, while the Dow Jones is flat. A number of the most popular companies’ stocks have taken a loss this week, including Tesla, Apple, Microsoft, and even Amazon.
Tesla alone has lost 11% of stock value in just a few days, in part because the company was refused entry into the S&P 500 index, which it has been seeking for a while.
In other news, the aggressive talk among politicians is ramping up. Donald Trump formally announced more tariffs for China if he wins the November presidential elections. Trump has been talking about the trade deficit of the United States with China since his 2016 campaign, and has imposed several tariffs during his time in office to combat that issue.
However, the trade deficit has actually widened during Trump’s presidency, despite the tariffs. In addition, the tariffs are paid by US companies, not by China, so they could cause a strain on the US economy. Many speculate that this is the reason why Trump has not imposed new tariffs in 2020, considering the critical state of the US economy due to the coronavirus pandemic. Nevertheless, he vowed to continue with tariffs after he is re-elected.
Echoing Trump’s tough guy approach, United Kingdom Prime Minister Boris Johnson has confirmed that the UK is ready to scrap the Withdrawal Agreement and carry on with its own plans after its final separation from the EU on December 31 this year.
As we reported previously, the government is working on a plan to establish a hard border in Ireland, which will be a breach of the agreement already signed with the EU. This has caused a major political rift between the UK and the European Union. The latter is likely to become an even tougher negotiator in the current trade talks the two parties are engaged in.
The pound is weakening because the prospect of a hard Brexit bodes ill for the UK economy.
Meanwhile, the oil market is under pressure again as the approaching end of the summer season is related to lower demand. The WTI price dropped to $38.33, while the Brent sank to $41.33 per barrel.
