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06.05.2019 \u2013 Daily report.<\/strong> Cold shower for all optimists in the matter of customs disputes: US President Donald Trump apparently loses patience with Beijing. He showed the communist rulers the tools of torture: if the Chinese don’t move in the negotiations, the punitive tariffs are to be increased on Friday. The German stock exchange and global trade react shocked.<\/p>\n Small sell-off at the beginning of the week: The DAX fell by a good two percent in early Monday trading. On Friday, the leading index reached its highest level since the end of September at 12,436 points. Now all stocks except E.ON were in red on the trading platform. Oil prices also fell. In a bloodbath for the bulls, the Chinese CSI 300 fell by 5.5 percent to 3,685 positions. The Shanghai Stock Exchange lost 5.6 percent to 2,906 points and Hang Seng fell 2.9 percent to 29,210 points.<\/p>\n On Sunday, the US president was visibly angry about China, which wants to renegotiate the customs dispute. “No! had tweeted Trump and announced that on Friday customs duties for Chinese imports of goods worth 200 billion dollars would be increased from 10 to 25 percent. Further goods worth 325 billion dollars would remain untaxed for the time being, but soon tariffs of 25 percent would also be introduced here, Trump tweeted further. The US president stressed that the import duties paid by China so far had had a positive effect on the US treasury. As one would expect, the majority of the media have hysterically entered the doomsday mode – apparently global trade is about to collapse, and President Trump is often described as somehow incompetent. Professional CFD traders should be calm in their analysis of the situation. The fact is that volatility has risen sharply. But it had reached unnaturally low levels in recent weeks anyway, as the VIX and the VDAX showed. The fact is that the stock market will settle down again under turbulence, punish the losers of the new situation and reward the winners. Needless to say, the tariff dispute on Monday will also affect Wall Street. Especially as other important economic data is not on the agenda. All major indices should now test the 50-day and 200-day lines above which they have hovered for weeks. Important Notes on This Publication: <\/strong><\/p>\n The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.<\/small><\/p>\n","protected":false},"excerpt":{"rendered":" 06.05.2019 \u2013 Daily report. Cold shower for all optimists in the matter of customs disputes: US President Donald Trump apparently loses patience with Beijing. He showed the communist rulers…<\/p>\n","protected":false},"author":37,"featured_media":12429,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[6],"tags":[],"class_list":["post-12430","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nMinus in Frankfurt – Crash in Asia<\/strong><\/h2>\n
Trump loses patience with China<\/strong><\/h2>\n
\nThis Wednesday the Chinese negotiator, Vice Prime Minister Liu He, was supposed to arrive in Washington for new talks. That seems questionable. “China should not negotiate with a pistol on its head,” the Wall Street Journal quoted an insider.<\/p>\nStaying calm is the first trader obligation<\/strong><\/h2>\n
\nPerhaps the latest threat was just a volte-face to discipline China. Maybe new punitive tariffs will actually come. So what? US corporations and Chinese companies that focus on their home market will benefit; export-oriented companies in the US and China will suffer. But the now talked about crisis for world trade does not have to come.
\nOtherwise, the US President will consistently keep his election promise to protect the domestic industry from unfair dumping competition. Just as Vladimir Putin has been doing for years in Russia, where in the face of horrendously high import duties for vehicles, international car manufacturers have flooded the country en masse, built factories and thousands of Russians have been trained as qualified skilled workers. What, you don’t know that wonderful St. Petersburg has become the Detroit of the North? Our media probably didn’t have the capacity for critical reporting on protectionism at the time.<\/p>\nThreatening storm on Wall Street<\/strong><\/h2>\n
\nBy the way, the US indices had a nice run on Friday. The leading US index Dow Jones Industrial went into the weekend with a plus of 0.8 percent at 26,505 points. The S&P 500 gained around 1 percent to 2946 points and the Nasdaq 100 advanced 1.6 percent to 7846 points.
\nSo Monday’s motto is: Stay cool when weak hands are shaken out of the market and react quickly with CFDs. We wish you successful trades!<\/p>\n