WTO warns trade weakness to continue in Q2 amid U.S.-China trade tensions

  • 5 years ago
Global trade weakness seems likely to extend into the second quarter,...and the outlook for world economy could worsen even further amid the U.S.-China trade tensions.
This according to the World Trade Organization on Monday.
The organization said its latest quarterly World Trade Outlook Indicator was 96-point-three,... a nine year-low.
A reading greater than 100 suggests above trend trade growth...and below 100 indicates below trend growth.
The WTO said the outlook could worsen if heightened trade tensions are not resolved...or if macroeconomic policy fails to adjust to the changing circumstances.
Taking a look at how the markets closed Monday... stocks fell all across the board as the intensifying fallout from a U.S. crackdown on Chinese telecom giant Huawei pressured the tech sector and raised concerns that the move would further inflame trade tensions between the world's two largest economies.
At closing bell, the Dow shed more than 84 points as Apple lagged... the S&P 500 pulled back seven-tenths of a percent and the Nasdaq dropped nearly 1-and-a-half percent.
On the Korean bourse, the benchmark KOSPI crushed early gains to end flat for the day, as foreigners turned net sellers following another week of escalating U.S.-China trade tensions.
The tech-heavy KOSDAQ declined by 1-point-7 percent... and the Korean won climbed after a finance ministry official warned against "herd-like behavior" and the benchmark bond yield also rose.
Oil were mixed on Monday after hitting multi-week highs overnight, as OPEC indicated over the weekend that it was likely to maintain production cuts that have helped boost crude prices this year.
Providing further support: escalating Middle East tensions.
Brent crude oil fell 24 cents to 71-dollars and 97 cents a barrel and the U.S. West Texas Intermediate crude futures settled 43 cents higher at 63-19 a barrel.

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