Since the U.S. President Donald Trump indicated that he is ready to impose tariffs on $500 billion worth of Chinese goods to the U.S. if China does not back down on its trade policies and shrugged off the impact on the stock market, sending waves through U.S. equities, I’ve found that this aggressive tone is evident enough to grow tit for tat geopolitical moves from different parts of the world. His will looks only to result in escalation of tariff trade war concerns, instead of any positive effort to cool down worries of global economy. Although, the U.S. President Donald Trump dismisses negative impact on stock markets from escalating trade tensions, but the U.S. stock futures took a dive in reaction to this news; which makes it evident enough to be taken as alarming sounds, especially at the time while most of the commodities are at their lowest levels due to growing concerns for tariff trade war. No doubt that the growing concerns of tariff trade war will result in more indecisiveness along with volatility in the commodities.
Moreover, this hype will prevail over the demand-supply equation of the natural gas more than ever before because it is impossible to predict the upcoming reactionary move not only from the China but also from other countries too. I find that the reactionary upcoming moves may be mapped from the fact that the European stocks also slumped after Trump’s comments. This chain reaction of Trump’s bold statement looks as an alarming sound, as the gold futures fell 0.01% to $1,223.90 a troy ounce while crude oil futures decreased 0.40% to $67.97 a barrel. The U.S. dollar index which measures the greenback against a basket of six major currencies was down 0.09% to 94.89.
This chain reaction of Trump’s bold statement looks as an alarming sound, especially at the time when most of the commodities are already at their lowest levels. Oil prices remained on track for sharp weekly declines in mid-morning trade on Friday, despite hopes that Saudi Arabia was determined not to flood markets with exports, as traders looked ahead to the latest weekly data on U.S. production. On analysis of the movement of WTI Crude Oil futures, I find the following trading zones for WTI Crude Oil futures for the Week of July 22nd, 2018. To understand the following charts in detail subscribe my YouTube channel.
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