The stock market indicators in New York are expected to open lower on Friday. President Donald Trump further boosted the already escalated trade tensions by announcing import tariffs for Mexican goods. China also made a contribution. The economic power draws up a black list for ‘unreliable’ foreign companies.
The United States will introduce 5 percent import tariffs for all products from Mexico from 10 June, as the country would not take adequate action against illegal immigration. The levies are increased by 5 percentage points every month until the level of 25 percent is reached. The US will only cut rates if Mexico has corrected the problem, Trump said via Twitter.
According to experts, American car makers in particular feel the sanctions against Mexico. They have been assembling their vehicles in the neighboring country for some time because of the lower labor costs and the short distance to the US. Automakers Ford and General Motors were hit in the stock market trade.
China is also increasingly offensive in the trade dispute, especially after the US imposed restrictions against Huawei. For example, Google recently limited Chinese technology company’s access to the Android operating system. It is possible that this will put the American concern on the Chinese blacklist. China wants to include companies that suddenly stop deliveries to Chinese companies.
Other American companies may also fall under the Chinese sanctions regime. Connoisseurs call the creator of iPhones Apple and chip giants Qualcomm and Intel as possible targets. These shares may start moving.
In addition, computer maker Dell is in the spotlight. The American concern managed to reverse its quarterly loss a year earlier and posted more sales thanks to a strong demand for computers. Uber also came up with definitive figures for the first quarter.
Amazon can also count on attention. The webshop giant would be interested in a takeover of the American telecom provider Boost.
Investors also have to process multiple macro-economic publications, including on consumer spending. The Dow-Jones index closed 0.2 percent higher on Thursday at 25,169.88 points. The broad S&P 500 also finished 0.2 percent in the plus, at 2788.86 points, and technology gauge Nasdaq climbed 0.3 percent to 7567.72 points.
About the author: John Campbell
John Campbell is the godfather of Polimedia and the oldest author from the whole team. His occasional guidance is crucial for everyone he advises.