Souring relations between the US and China could have the greatest impact on technology sector stocks. The technology sector is in a place of particular weakness due to its substantial supply chain requirements based in China.
The worsening relations are largely due to China’s recent security
Once you’ve bought or received bitcoins; you now need to keep them as safe as possible. This guide will provide… More activity in Hong Kong. In response, President Trump announced an end to Hong Kong’s privileged status for trade.
However, while the President made clear his condemnation of the actions, he stopped short of further trade restrictions on China. This caused an almost immediate jump in technology stocks, particularly in semiconductors.
According to Paul Christopher, head of global market strategy at Wells Fargo Investment Institute, the President’s actions forestalled a substantial stock decline. Christopher stated:
If he had done something more heavy handed, if he had done something to change the phase one trade deal, that would have been the fear that the market had started pricing in.
Analysts also suggest that posturing by both former Vice President Joe Biden and President Trump during the election could increase tensions. With an election forthcoming, both candidates will want to appear strong.
Images courtesy of Shutterstock, Trading View and Twitter.
Disclaimer. Read MoreRead Less
As a leading organization in blockchain and fintech news, BeInCrypto always makes every effort to adhere to a strict set of editorial policies and practice the highest level of journalistic standards. That being said, we always encourage and urge readers to conduct their own research in relation to any claims made in this article. This article is intended as news or presented for informational purposes only. The topic of the article and information provided could potentially impact the value of a digital asset or cryptocurrency but is never intended to do so. Likewise, the content of the article and information provided within is not intended to, and does not, present sufficient information for the purposes of making a financial decision or investment. This article is explicitly not intended to be financial advice, is not financial advice, and should not be construed as financial advice. The content and information provided in this article were not prepared by a certified financial professional. All readers should always conduct their own due diligence with a certified financial professional before making any investment decisions. The author of this article may, at the time of its writing, hold any amount of Bitcoin, cryptocurrency, other digital currency, or financial instruments — including but not limited to any that appear in the contents of this article.
Source: https://beincrypto.com/us-china-tensions-could-put-pressure-on-technology-industries/
