The global financial markets continue to trade a risk-off sentiment over trade war escalation. In case you are wondering what Risk-off sentiment is, well it’s a market scenario when investors invest in risk free assets to have secure positions.
Earlier today, China’s Commerce Ministry said that the US needs to adjust its way of action if it wants to continue discussions with China to end this trade war.
The United States has increased trade disputes greatly and raised chances of a global economic recession. As per China, Beijing will take necessary steps to protect Chinese firms’ interests.
The process of retaliation is hurting companies on both sides as over 40% of the US companies showed concerns to move their operations abroad.
How is this impacting the market?
Gold – Stays bullish over haven appeal.
Stock Exchange – The stock indices are likely to remain bearish over risk off sentiment.