This week, the US market and Asia market gained with the fading of trade-war fears with S&P500 recorded all-time high though the markets were still under trade war tensions earlier this week.
US market erased gains on Friday after Trump reportedly said that he wanted to move forward with tariffs on $200 billion in Chinese goods. Investors were concerned about the intention of President Donald Trump to put 10% tariffs on $200 billion in Chinese goods, which will go up to 25% at the end of year. On the other hand, China responded that they would not just play defense in this trade war with the institution of new tariffs on US goods worth $60 billion on Sep 24, reported by Reuters. This put further pressure on the markets, causing Asia market continued to plunge earlier this week.
However, the markets started to rise on Tuesday as the United States slapped new tariffs on Chinese goods that were lower than expected. US market continued to edge higher on Thursday, led by Tech giants with Microsoft reaching another new high record.
This week, Amazon was on its way back to $2000 level with its CEO Jeff Bezos announced that a decision of building a second headquarters will be made before the end of the year. Besides, Amazon planned to release at least eight new Alexa-related products before the end of this year, considering a plan to open as many as 3,000 new Amazon Go cashierless stores in the next few years.
Alphabet’s google unit is partnering with Renault-Nissan-Mitsubishi alliance to use its Android operating system in automobile media displays. Apple rose after the Apple Watch and various other consumer gadgets were being exempted from the newest round of tariffs on goods imported from China. Netflix spiked after the analysts at Guggenheim hiked their price target on Netflix shares to $420 from $360, but the gain was capped due to the escalation of trade tensions.
Alibaba recovered, trading at the level $165 though its chairman, Jack Ma said that his company no longer had intentions to bring 1 million jobs to US, given the ongoing trade war between Beijing and Washington. Facebook was instructed to comply with European Union consumer rules by the end of this year or the company might face sanctions, according to a statement issued by European Justice Commissioner Vera Jourova.
Xiaomi rose following the announcement of its first post-IPO structural adjustment by Xiaomi CEO Lei Jun. In addition, XiaoMi gained after the investors regained confidence on Asia market with the fading of trade war tensions.
However, I’m still concerning about the possibility of flaring of trade war tensions again after China’s imposition of new tariffs on US goods worth $60 billion which will come into effect on Sep 24.
For oil trading, oil prices lowered on Monday as Baker Hughes reported increase of oil rig counts by 7 and global crude oil demands were expected to drop due to the trade tensions between US and China, but the losses was supported by the potential supply tightening due to Iran sanctions. However, oil prices later spiked with the signs that OPEC would not be prepared to raise output to address shrinking supplies from Iran. Oil prices continued to edge higher after the US crude stockpiles fell by 2.1 million barrels, reported by EIA. Oil price again fell after Trump ordered OPEC to lower the oil price at its meeting in Algeria this weekend.
Summary of my trading activity:
Hold: Facebook, Amazon, Apple, Netflix, Google, Microsoft, Alibaba, Xiaomi
Sources: CNBC, Investing.com