Interestingly, the sectors expected to benefit the most from the partial agreement signed yesterday between US and China did not have an easy day, as soybean and cotton prices fell -1.4% and -1.5% respectively , notwithstanding the fact that China has pledged to buy more from US producers, scepticism reigns among analysts as it is unclear how the Asian country will make purchases or even raise tariffs imposed on some agricultural products, i.e. the key sentiment for now is to wait and see. WTI crude and Natural Gas, which also fell by -0.7% and -3.1% respectively, even after It has been agreed that the world’s second largest economy will import another $52 billion of US energy products.
Photo by Zac Wolff.
Another group that should have had a wave of optimism sweeping sentiment, as it would benefit most from the softening of trade relations between the two countries, is the semiconductor has lost yesterday -1.06%. Mainly because the situation of little or nothing of these companies will improve and the latest development has even been detrimental, with the prospect of further restrictions on sales of products and services to the giant Huawei. Already another sector that said little or nothing during the months of the financial impasse appears to be coming out as a winner, notably credit-card companies such as Visa, Mastercard and American Express, which according to the agreement should not take more than 90 days to see their requests to enter the Chinese market, a door that opens access to $27 trillion trades in China’s electronic payments sector.
