{"id":19074,"date":"2019-09-30T09:58:48","date_gmt":"2019-09-30T08:58:48","guid":{"rendered":"https:\/\/traders-paradise.com\/?p=19074"},"modified":"2020-07-07T15:08:01","modified_gmt":"2020-07-07T14:08:01","slug":"trade-war-spillover-in-the-stock-markets","status":"publish","type":"post","link":"https:\/\/traders-paradise.com\/magazine\/2019\/09\/trade-war-spillover-in-the-stock-markets\/","title":{"rendered":"Trade War Spillover In The Stock Markets"},"content":{"rendered":"

3 min read<\/em><\/p>\n

\"Trade<\/p>\n

The U.S. Treasury announced in a Saturday statement that the administration “is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time.”\u00a0 Following this news<\/a>, Dow Jones futures grew a bit on Sunday evening, the same happened with S&P 500 futures and Nasdaq futures.<\/span><\/p>\n

Only one day before, Bloomberg reported the Trump administration is thinking about limiting the exposure of US investment to China. Such a decision would have an impact on public pension funds’ exposure to China’s market and limitation for Chinese companies in main stock indexes.<\/span><\/p>\n

The information about delisting Chinese stocks from U.S. exchanges frightened investors. The consequences of the trade war spillover were that Alibaba stock dropped 5.1%, slipping through its 50-day and 200-day moving averages. JD.com stock dropped 6% to a bit over its 200-day.\u00a0 <\/span>Two Chinese IPOs, Pinduoduo slipped 4.2% and Huya stock 9.4% due to trade war spillover. New Oriental Education stock, dropped 6.55%, which is under its 50-day line.<\/span><\/p>\n

Beijing described possible limitations on U.S. investments in China \u201cthe latest attempt at a decoupling,\u201d published in Global Times on Sunday. <\/span>All reports of Chinese state-owned media stated that the delisting Chinese companies from US stock exchanges would have deep impact on both, Chinese and US economies.<\/span><\/p>\n

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