James Alexander Michie: Trump stokes fears | Washington Examiner
Author: James Alexander Michie
The basic substructures of the markets remain strong however the actions were taken by Donald Trump in his growing battle with China, the NATO meeting, his visit to the United Kingdom and his meeting with Russian President Vladimir Putin, cause nerves and Some fear in the financial and commodity markets, in such a way that it has influenced fundamental investment decisions.
Trump has been applauded in the area of energy since he took office last January due to his deregulatory agenda and the search for the so-called “energy domain”, however, there is currently the possibility that he threatens to break that goal when he also activates fears of a global economic slowdown.
It is considered that Trump is correct in stating that China commits trade abuses but supporting a trade war by imposing tariffs on Chinese products in addition to the threat of imposing taxes on $ 200 billion is not the best, in fact, of the same not be a winner, on the contrary, everyone will lose in that war, also as a result it has been seen that the markets have taken a defensive trend as it is not known exactly what are the intentions of the US president and likewise the same markets They have been affected by themselves.
On the other hand, the international benchmark oil price collapsed 7%, this has been its biggest drop in two years that was due to Trump’s report of a list of Chinese products that could receive a 10% valuation, this for a part would be assumed to be good for those consumers in the United States but it is not because there are concerns about the slowdown in global economic growth as well as a decrease in energy demand.
A recent monthly report of the oil cartel affirms that the commercial tensions that are being observed would undoubtedly negatively affect investment, capital flows and consumer spending, as well as a subsequent negative effect on the world oil market and likewise, Several CEOs, have expressed concern. As a result of all this, it would be considered devastating for the oil sector. Meanwhile, energy companies based in the United States are fragile to economic losses in a commercial altercation that continues to grow and seems not to end.
Source: Dan K. Eberhart | The Washington Post
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