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Market Recap – Rare Minerals and US-China trade tensions

Wednesday, May 29, 2019 10:56 AM GMT

While Europe was preoccupied with the results of its elections, the world was getting insights on what marked the collapse of US-China trade negotiations and was pricing in gloomy scenarios. With the exception of the Chinese stock exchange, all major indexes (SP500, Dow Jones, Nikkei, Dax, FTSE) dropped significantly.

In 2018 China produced about 78% of rare earths and owns about 40% of global resources. Last week Chinese President Xi visited rare earth mining and processing facilities. Yesterday, a comment by a Chinese official of the economic planning agency and a headline by the Chinese tabloid Global Times, spread fears that China is considering limiting rare earth exports towards the US.

Today on 23.59 GMT, Trish Regan, the Fox anchorwoman, and Liu Xin, the anchorwoman of the Chinese Central Television (CCTV), are having a debate on the US-China negotiations, that will be broadcasted from the Fox Business Network. Meanwhile, Huawei is filing a case in US courts against the recent federal ban.

Macro releases: The Bank of Canada is having its monetary meeting and the statement is expected on 15.00 GMT.

 

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