While the good people in Asia were in bed on Sunday night, US President Donald Trump Sunday put extra pressure on China to strike a trade deal, announcing he will increase tariffs on $200 billion of Chinese imports to 25% from 10%. He also threatened to extend a new 25% duty on another $325 billion in imports.
Maybe we should all take a leaf from President Trump. After all, he has an estimated net worth of $3.1 billion. He is also author of the book "Trump: The Art of the Deal". If there is one person to shoulder the responsibility of negotiating a good deal for the USA, the good citizens can count on Trump, right?
Increasing the current tax from 10% to 25% AND imposing a new 25% duty - double negative = positive right?!
Markets Reacting - Sea of Red
S&P500, Nikkei225, Taiwan, Singapore, China, Hong Kong, and probably all other equity indexes are negative as well.
As of 6 May 2019, 10:00 AM Singapore Time (SGT). Offset UTC +8:00 hours
So the sell-offs' not due to threats from North Korea or the rising conflict in Middle East, but from the financial war between 2 nations trying to flex and tussling for dominance in an environment where its people are already struggling financially.