ZuluTrade Blog

Market View

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.



The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of Zulutrade and do not constitute an offer or invitation to anyone to invest or trade.

Comments are closed

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Signing up is totally free, and there is NO contract and NO monthly fees, ever.

This blog is for informational purposes only. This blog is not intended for distribution channels and may not be reproduced or distributed without the permission of Zulu Trade ltd or any of its affiliated entities (“ZuluTrade”). All opinions, news, prices or other information contained in this blog are provided as general market commentary and this report does not contain and it is in not to be considered in any circumstance as market analysis, offer or solicitation to buy or sell any financial instruments, personalized or general recommendation for any investment decision or investment strategy by ZuluTrade, in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this blog should not be construed as financial or investment advice on any subject matter. The financial instruments referred to herein may not be suitable for all investors and any investments on such financial instruments requires the assessment by each investor and its counsels of the investor’s investment characteristics, including the investment risks which the latter is willing to assume. This blog has been based on information which has been made public, obtained from sources believed to be reliable, but it has not been verified by ZuluTrade. No representation or warranty (expressed or implied) is made as to the accuracy, completeness, correctness, timeliness or fairness of the information or opinions herein, all of which are subject to change without notice. No responsibility of liability whatsoever of howsoever arising is accepted in relation to the contents hereof by ZuluTrade or any of its directors, officers, employees. Further, no representation is being made that any results will be achieved, and past performance is not indicative of future performance.