The trade conflict between the United States and China continues to dictate the way the market moves. In the tech sector, chip manufacturers are lowering their growth forecasts because of this conflict. Moreover, the recent ban on Huawei from the United States has been a particularly damaging blow to American and European tech stock indices. Chip-makers such as Qualcomm, Skyworks, Broadcom, Infineon, ASML, and more are all pessimistic about their future business.
Speaking of the negative effects of the trade war, the industrial output index for the month of May from China slumped to a 17-year low. China is the biggest importer of raw materials and fuel to support its massive industry, but this huge drop indicates demand from China will be significantly lower. This will have negative repercussions for global trade, as many countries do business with China.
Oil prices today are lowering once more, as the IEA published a forecast of growing supply. This balanced out yesterday’s 4% spike in oil prices which was caused by attacks on two tankers in the Gulf of Oman, allegedly by Iran.
