Countermeasures from china: U.S. to close down its consulate in Chengdu
Early today China’s Foreign Ministry stated that it is withdrawing the permission for the U.S. consulate general in the Chinese city of Chengdu.
According to CNBC an online statement included pieces of information stating that the government further directed the consulate general to terminate any services. The foreign ministry stated in an online statement based on a CNBC translation that “The current situation between China and the U.S. is something the Chinese side does not want to see,” Chinese-language statement, “The responsibility lies entirely with the U.S. side,” the statement added. “We again urge the U.S. side to immediately revoke its relevant wrong decisions, to create necessary conditions for the two countries’ relationship to return to normal. “According to the consulate’s website, the Chengdu consular area houses the questionable self-governing province of Tibet, the city of Chongqing, and the regions of Yunnan, Sichuan, and Guizhou.
The decision occurred after the U.S. required China to shut its consulate in Houston. Morgan Ortagus the U.S. State Department representative stated that the order to shut down China’s consulate general in Houston was implemented in order to preserve the privacy of the American intellectual property and the private data of its residents. China had denounced the order and warned that strong countermeasures are in order.
Dow lost more than 350 points
U.S Stocks dropped during volatile trading yesterday while the software giant Microsoft and the mobile maker Apple drove down the general market. That while traders digested the depressing unemployment data.
The Dow Jones Industrial Average fell more than 350 points, to 26,652.33. The S&P 500 fell approximately 1%, to 3,235.66, giving back a four-day winning streak. The Nasdaq Composite lost 244.71 points, to 10,461.42 as the sharp drop in major technology companies expanded.
Gold is heading towards its best week in more than 90 days
Today the popular safe-haven Gold seems to go towards its most significant weekly increase in more than 90 days while it is near a nine-year top. The yellow metal also appeared to benefit from a weak greenback and inflation expectations because of the incentive plan for virus-hit economies.
Spot gold was exchanged today at $1,885.32 per ounce having scored its most powerful level since September 2011 at $1,897.16 yesterday.
Oil gained over a weaker greenback
Today Oil went up while the greenback dropped to an almost 24 month low. However, demand fears are still there due to increasing coronavirus cases and U.S.-China pressures which restricted any further improvements in value. The greenback fell to 22-month lows versus a basket of rival currencies. A softer dollar normally encourages the purchasing of commodities priced in greenback, like oil, due to the fact that they become more affordable for holders of other currencies.
Brent crude surged 15 cents, to $43.46 a barrel while U.S. West Texas Intermediate (WTI) crude increased by 12 cents, to $41.19.
The above content is considered to be market commentary information and shall not be perceived as independent investment research or investment advice.