There could be a likely winner in the potential trade war between the United States and China which got more pronounced last week, according to one strategist.
"One of the bigger beneficiaries of that would be Germany — Germany and Europe broadly," Gina Sanchez, CEO of Chantico Global, said during a televisioninterview.
"European trade with China has been on the rise for the past 10 years."
According to data from the European Commission, the second largest export market in the economic block is Germany. Between 2012 to 2016., there has been an annual average rate of increase of 4 per cent in the amount of exports from Germany to China. In the same period, there had been a rise of 98 per cent in the value of total trade between the EU and China.
The rising prospects of a trade war between the two largest economies in the world last week saw Germany's DAX being swept even while there was a huge rush to sell in the global markets. While plans of imposition of tariff on import products from China worth $50 million was announced by the Trump administration in the U.S., China retaliated with a tariff plan of itself targeting U.S. exports to the country worth about $3 billion.
There was a weekly loss of 4 per cent in the value of the DAX during the close of markets on Friday. This put the index on the territory of correction as it had recovered from a drop of 12 per cent earlier after it had gained a 52-week high that was set on January 23.
Last week there was a total loss of 3 percentage points in France’s CAC 40 and the FTSE 100 in London.
Spain IBEX 325, the FTSE 100 and the STOXX Europe 600 were among those markets that entered the correction domain at the close of markets last week. there was a drop of 14 per cent in Japan's Nikkei from the highs it had hit in January and it was easily the one index that was the hardest hit.
"The Nikkei is suffering from the fact that everyone is rushing into the yen as a safe haven currency, and so it will make that challenging," said Sanchez.
a rebound in the DAX and Nikkei in their short-term technical is seen by Bill Baruch., president of Blue Line Futures.
"There's a lot of support just below the market," Baruch told "Trading Nation" on Friday.
"Look at it as a win-win situation — you either buy momentum after Friday or you're buying lower [this] week," he said. "The market is going to recover off some of these big support levels."
(Source:www.cnbc.com)
"One of the bigger beneficiaries of that would be Germany — Germany and Europe broadly," Gina Sanchez, CEO of Chantico Global, said during a televisioninterview.
"European trade with China has been on the rise for the past 10 years."
According to data from the European Commission, the second largest export market in the economic block is Germany. Between 2012 to 2016., there has been an annual average rate of increase of 4 per cent in the amount of exports from Germany to China. In the same period, there had been a rise of 98 per cent in the value of total trade between the EU and China.
The rising prospects of a trade war between the two largest economies in the world last week saw Germany's DAX being swept even while there was a huge rush to sell in the global markets. While plans of imposition of tariff on import products from China worth $50 million was announced by the Trump administration in the U.S., China retaliated with a tariff plan of itself targeting U.S. exports to the country worth about $3 billion.
There was a weekly loss of 4 per cent in the value of the DAX during the close of markets on Friday. This put the index on the territory of correction as it had recovered from a drop of 12 per cent earlier after it had gained a 52-week high that was set on January 23.
Last week there was a total loss of 3 percentage points in France’s CAC 40 and the FTSE 100 in London.
Spain IBEX 325, the FTSE 100 and the STOXX Europe 600 were among those markets that entered the correction domain at the close of markets last week. there was a drop of 14 per cent in Japan's Nikkei from the highs it had hit in January and it was easily the one index that was the hardest hit.
"The Nikkei is suffering from the fact that everyone is rushing into the yen as a safe haven currency, and so it will make that challenging," said Sanchez.
a rebound in the DAX and Nikkei in their short-term technical is seen by Bill Baruch., president of Blue Line Futures.
"There's a lot of support just below the market," Baruch told "Trading Nation" on Friday.
"Look at it as a win-win situation — you either buy momentum after Friday or you're buying lower [this] week," he said. "The market is going to recover off some of these big support levels."
(Source:www.cnbc.com)