News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • 🇪🇸 Balance of Trade (JUL) Actual: €-1.60B Previous: €-0.98B https://www.dailyfx.com/economic-calendar#2021-09-20
  • Heads Up:🇪🇸 Balance of Trade (JUL) due at 08:00 GMT (15min) Previous: €-0.98B https://www.dailyfx.com/economic-calendar#2021-09-20
  • Fitch on China Property Developers - View will turn negative if sales in H2 21 fall below that achieved in H2 19 and/or if sharp fall follows through to H1 22 - Government policies in sector remain tight and show no sign of imminent loosening
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0uF2Ct https://t.co/B0Y3XJhkRS
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/1xhewkdV21
  • (USD Weekly Tech) US Dollar Dominant Uptrend Back In Focus: EUR/USD, USD/JPY, NZD/USD, USD/CHF https://www.dailyfx.com/forex/technical/article/special_report/2021/09/20/US-Dollar-Dominant-Uptrend-Back-In-Focus-EURUSD-USDJPY-NZDUSD-USDCHF.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/IpwzBGCi7P
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/qv8keXFzHZ
  • Join @IlyaSpivak at 22:00 EST/2:00 GMT for his cross-market weekly outlook webinar. Register here: https://t.co/MKGHc9ae64 https://t.co/JMlT0Wn3DK
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/sbejkd7XT5
  • *Reminder: Weekly Strategy Webinar Monday morning at 8:30am ET - https://t.co/lxd5fZnn4H Mid-Week Market Update on Wednesday at 9:30am ET - https://t.co/8SFBJxNZrA
S&P 500 Tumbles After Trump Threatens China and Japan on Trade

S&P 500 Tumbles After Trump Threatens China and Japan on Trade

Peter Hanks, Strategist

Talking Points:

  • The $267b tariff figure would be supplementary to the proposed $200b and $50b already facing China
  • President Trump discussed trade negotiations with Japan, possibly opening a new front in the trade war
  • Consult our economic calendarfor dates of upcoming data releases and market events

Check out our Live Webinars and join our analysts as they cover economic data releases and central bank events live and gauge the effect on markets.

President Trump Threatens China with Additional Tariffs

Markets were rattled as President Trump discussed trade policy from Air-Force One Friday afternoon. In a week dominated by trade fears, the President threatened he could hit China with $267 billion in tariffs. He said they were ‘ready to go’ and could be issued on short notice. The tariffs would be additional to the $50 billion already enacted and the $200 billion currently under discussion.

The public comment period for $200 billion worth of tariffs on China ended this week and markets expected a decision Friday. If enacted, the $200 billion in addition to the metal tariffs and the $50 billion of tariffs already imposed would be a significant portion of China’s total exports to the United States. At this time, no decision has been announced so the threat of another $267 billion is quite inflammatory. Should all proposed tariffs eventually be imposed, the total would surpass China’s total exports to the United States. In the past, President Trump has threatened to enact tariffs on all Chinese exports. The additional $267 billion would effectively do that.

Read up on the history of economic conflicts with A Brief History of Trade Wars.

A New Front in the Trade War

Japan’s stance in the ongoing trade wars has been relatively reserved as Japanese officials have shown little interest in negotiating. Until today, the US administration has made few direct comments on the trade deficit with Japan. President Trump looked to change that, saying “if we don’t make a deal with Japan, Japan knows it’s a big deal.” Possibly alluding to increased pressure, the President will undoubtedly seek to reduce the trade deficit. Already facing metal tariffs, Japan’s willingness to negotiate may change if auto tariffs are proposed.

NAFTA ‘Close’ to a Resolution

One positive on the trade war front is NAFTA. In a breakthrough deal two weeks ago, Mexico and the United States agreed to a bilateral deal separate from the trilateral agreement. After the negotiations, both US and Mexican officials discussed their willingness and desire to negotiate with Canada to reach a trilateral agreement and keep NAFTA in place.

This week, Canada’s Freeland and US Trade Representative Lighthizer have negotiated daily and the mood surrounding the talks is reportedly positive. Although discussions have been close to resolution for what feels like months, they may finally be concluded as daily progress is cited and the issues impeding a deal are resolved. On his flight, President Trump said “Canada is moving along and we’ll see what happens,” referring to NAFTA negotiations.

S&P 500 Price Chart 10-Minute Time Frame, September 7th

S&P 500 Tumbles After Trump Threatens China and Japan on Trade

Dow Price Chart 10-Minute Time Frame, September 7th

S&P 500 Tumbles After Trump Threatens China and Japan on Trade

NASDAQ Price Chart 10-Minute Time Frame, September 7th

S&P 500 Tumbles After Trump Threatens China and Japan on Trade

As we look to markets, a broad sell-off in US equities commenced in response to the comments. The S&P 500, Dow, and NASDAQ all shed what little gains they had and the threats cemented a decidedly red week for US equities. Moving forward, markets should remain timid until an announcement on the $200 billion in tariffs is made.

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES