Forex Marketz Daily Forex News – Fully Markets Update
The international crude oil futures contract, Brent rose during the Asian trade session on Tuesday. This contract, on Monday, hit its lowest price level since January. Oil traders looked to book profits as the trade war between China and the United States escalated and entered uncharted waters.
Since July 31, the Brent contract has shed 7.6 percent. The fall started after U.S. President Donald Trump abruptly ended the trade war truce and vowed to impose new sanctions on Chinese goods. These new tariffs take effect on September 1.
As of 3:50 am GMT, Brent crude futures were trading higher. This contract added 0.8 percent or 47 cents to trade at $60.28 a barrel. This contract shed three percent on Monday thanks to heightened trade tensions between the two largest oil importers. This escalation will not be good for demand.
West Texas Intermediate (WTI) crude futures contract, for front end delivery, was also up. This contract added 0.9 percent or 47 cents to trade at $55.16 per barrel.
Crude Oil Traders React Mounting Trade Tensions between China and the U.S.
Trade tensions between China and the United States are front and center today. Traders are growing increasingly pessimistic that the two economic powerhouses will not sign a trade deal anytime soon. Both sides are escalating matters. This escalation, yesterday, led to the biggest selloff in the global equity markets this year.
Trade tensions started, once again, after President Donald Trump broke the trade war truce and announced a ten percent tariff against $300 billion of Chinese goods.
In response, companies in China will not import U.S. agricultural goods. This will lead Trump to retaliate even further as China is hitting him where it hurts the most and just ahead of the 2020 election. To make matters worse, yesterday, the U.S. Department designated China as a currency manipulator.
