U.S.-China trade war | 30 August 2019

U.S.-China trade war


#Intel:


The USA-China trade war is having a negative impact on US technology companies. D. Tramp said U.S. manufacturers should move their Chinese operations elsewhere or bring jobs back to the United States. President United States retaliated against China's tariff move, saying he's raising tariffs to 30% on some Chinese imports after Beijing said it would place added tariffs on U.S. goods. The spread between the yields of shorter- and longer-duration Treasury bonds slipped below zero earlier this year, a so-called yield curve inversion which has presaged recessions in the past. The yield of 30-year Treasuries hit record lows.


Trading recommendation: Sell 45.40 and take profit 44.11.


U.S.-China trade war


#Tesla:


The company is experiencing difficulties in attracting cheap financing for the production of electro mobile. The company has a high credit load and suffers from a lack of cheap credit resources. This is a negative factor for capitalization! Investors are selling shares around the world in panic. Most of all in these times suffer companies who have credit problems. Tesla's capitalization has decreased by 36% since the beginning of the year. We are expecting the bear rally to continue in the shares of this company!


Trading recommendation: Sell 212.74 and take profit 207.85.


U.S.-China trade war


#Apple:


U.S. manufacturers should move their Chinese operations elsewhere or bring jobs back to the United States said D. Tramp. This is a negative signal for Apple. The company has many factories in China. Apple uses cheap labor in China to increase business margins. D. Trump in anger! United States President asked, "My only question is, who is our biggest enemy, Jay Powell or Chairman Xi?” Chairman Xi being Xi Jinping, the Chinese president. Investors are increasingly short positions on shares of companies from the high-tech sector.


Trading recommendation: Sell 203.10 and take profit 199.21.

 

David Johnson
Analyst of «FreshForex» company
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