US-China Trade Tensions Continue; The Tech Industry Is Getting Hit Hard; Eurozone CPI and US ADP Employment Report.

This week started off with geopolitical tensions between the US and China, that had a knock-on effect on the Tech world. Markets are on the edge and everyone is waiting in anticipation of the Eurozone inflation figures, together with ADP Employment data from the US, in order to have an idea of what to expect on Friday.
US-China Trade Tensions Continue; The Tech Industry Is Getting Hit Hard
Yesterday, everyone was talking about how the stock market is getting affected by China’s decision to impose new tariffs on goods, imported from the US. This is China’s response to the US imposing duties on Chinese steel and aluminium. Even the World Trade Organisation is trying to step in and find a common ground between the conflicting sides by warning that the markets have already experienced the worst quarter in the last couple of years. Today’s morning headlines are already talking about the US thinking of proposing a 25% tariff on high-tech Chinese products. The question here is, who will win this “game of checkers”? Or even better, will there be a winner in the end at all?
The US technology sector got affected by the Chinese tariffs as well, because it is well known that the US tech companies have very close ties with the Chinese manufacturers. Also, in addition to all this, Trump’s tweets about Amazon not paying enough taxes and just references to the general implementation of more regulations on big companies, have also put pressure on tech giants.
Since the peak in March, the technological Nasdaq has dropped already around 10% and on the 2nd of April even closed below the 2018 opening price. Yesterday, we saw a bit of a rebound in the US equity markets, where Nasdaq closed on the day with around 1% gain.

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