by M.K. Matthews
Cue up Marvin Gaye’s iconic hit, “What’s Goin’ On.”
I woke up to find that the tariff situation between China and the US is wreaking havoc on the world markets. To recap yesterday, the market struggled and yoyo-ed but closed at a very modest increase after the losses of the prior day.
This morning that is no longer true. As I type this the European markets are down, Asia is down, and closer to home, the US markets are diving in the Futures Market. The dollar is down. The US market hasn’t opened yet but analysts are predicting a 500 point drop today.
Here are the things to watch today.
I will try to sort through and offer you clarification. Here are some articles to check out on this topic:
- All 30 Dow stocks drop, led by Boeing
- Dollar declines as China slaps tariffs on $50 billion worth of U.S. products
There is a tit for tat between China and the US regarding tariff threats that are escalating daily and could continue through the summer. The latest round of tariffs could go into effect as soon as next month. This will have a dampening effect on the market until this lobbing of financial bombs is sorted out.
As it stands today, China is threatening as much as a 25% tariff on 106 American products from airplanes to soybeans. How could something as small as a single soybean affect the markets and subsequently your wallet? How could a single soybean affect global currencies? Market Watch explains:
- U.S. soybeans would be China’s biggest weapon in a trade war
- China threatens U.S. cars, planes and soybeans with tariffs in response to Trump
For those of you currently invested in stocks, I’m sure you are wondering how you could be affected. The broad reach over the various segments of the market are not going to offer many safe harbors, even if invested in a broad-based mutual fund. Again, Market Watch has some answers.