China’s attitude towards the United States has become significantly more negative. State media in China published statements indicating that they no longer see the United States as a reliable negotiations partner. Recently the US surprisingly hiked up tariffs against China from 10 to 25% and also banned Huawei from working with American companies.
As a result, investors are getting pessimistic about the prospects of a trade agreement between the two countries. While the US has still expressed its intention to continue talking, it is clear that China’s patience is wearing thin. This has pushed both American and Asian stock indices down.
On the other hand, oil prices are moving upwards due to the increased volatility on the oil market. Though earlier in the week there was a strong downward push in the price due to higher output volumes in the United States, now the conflict between the US and Iran, who have a dispute over unilateral sanctions on Iran, is causing the growth of prices. The Brent crude today reached $72.89, while the WTI approached $63.30 this morning.
