The trade war between the U.S. and China started in 2018. The dispute between the two biggest economies in the world created additional pressure on the stocks across the globe. It is not surprising as the trade war had a serious impact on the global economy. Another important fact is that the global economy is slowing down. The trade disputes and regional tensions in the Middle East or elsewhere is a serious problem can further complicate the situation.
Unfortunately, neither the U.S. nor China are not doing enough to end this dispute as soon as possible. The next round of negotiations will take place in Washington D.C. on October 10. The news which may complicate the situation happened on Friday.
On Friday, several media outlets reported that Trump Administration was thinking about the imposing limits on U.S investments in China. There was also important news which would directly affect the stock markets. Based on this information one of the options was to remove the Chinese companies from U.S. stock exchanges.
Hopefully, White House trade advisor Peter Navarro denied this information. He said that this news was not accurate and contained false information. However, Navarro did not specify which part of the report he mentioned when he talked about inaccuracy.
The spokesperson of U.S. Treasury made a similar comment over the weekend. She said that Trump administration has no intention to block Chinese companies from U.S. stock exchanges.
Stock markets on Monday
Despite this incident stock indexes rose on September 30. The Dow Jones Industrial Average increased by 96.58 points, or 0.4% was close to 26,916. Another U.S. index the S&P 500 rose by 0.5% to 2,976. The NASDAQ composite rose by 0.8% to 7,999.
Since the beginning of September, the Dow Jones rose by 1.9% while the S&P 500 rose by 1.7%. The NASDAQ strengthened its position by 0.5%.
