[San Francisco 26th Reuters]-Trump's bullish attitude on US trade issues with China and the reluctance of negotiations regarding the prospects for negotiations continue to hurt the stock prices of US companies that are heavily dependent on China.
When Chinese deputy prime minister Liu Tsuru said on 26th that he would try to solve the problem through “cool” negotiations, Mr. Trump expressed his policy to resume trade talks with China and expressed his expectation for the realization of the agreement. As a result, US stocks on the 26th rose by over 1%.
However, on the 23rd, Mr. Trump launched an increase in the tariff rate on Chinese products of about $ 550 billion, in opposition to China's announcement that it will impose additional tariffs on US products. > Was down 2.6%.
The mystery deepens as to what Mr. Trump wants to do about trade friction with China, but the worries of investors who are concerned that the US will fall into recession due to tariffs so far are increasing further .
ODAA Senior Market Analyst Edward Moya wrote in a research note that "This trade war story is more complicated than Quentin Tarantino's movie", and tariff increases and coverage are Added that it would hurt the people and pull the economy.
Comparing the baskets of brands affected by the US-China trade war, which Barclays originally compiled, with the price movements of 500 S & P totals, the last three months were almost the same, but this month the baskets are underperforming. doing. Basket is a company that relies heavily on imported products from China, such as Apple <AAPL.O>, Nike <NKE.N>, Honeywell International <HON.N>, etc. It is configured.
There are no stock prices of US semiconductor companies such as Micron Technology <MU.O> and Qualcomm <QCOM.O>, whose income from China accounts for 50% or more of sales.
In addition, intensification of friction between the United States and China and the economic slowdown in China have hurt several US industrial and material companies that have grown by targeting the Chinese market. General Motors (GM) <GM.N> and Ford Motor Company <FN> have lowered their full-year earnings outlook because of continuing tariff increases. Caterpillar <CAT.N> recently suggested that tariffs on imported goods from China will increase raw material costs by up to $ 200 million later this year.
Paul Norte, portfolio manager of Kingview Asset Management, said in an investor note on the 26th: “The future development is completely unknown and investors like the ones who stayed on the beach for too long. "It's not strange to get burned in the announcement of" ", while pointed out that the wind could blow and everything could go well.
