There has been a slew of events taking place after the trade tariffs were imposed by the U.S. and China had retaliated with equal vigor.
The U.S. has banned telecom equipment from other countries that have been termed as “foreign adversaries”. The announcement from the Trump administration was made to protect the U.S. computer network and to safeguard the country.
A national emergency has been declared and Huawei Technologies Co seems to play a central role in it, as the company is mentioned along with 70 affiliates in the Entity List.
Meanwhile, retail sales have shown a decline for the second time within three months. It has fallen by 0.2 percent for the month of April. The worst affected were autos, internet stores, electronic appliances, and internet stores. With economic data showing signs of weakness, suggestions of a global economic slowdown are more pronounced.
Auto tariffs that President Trump planned to propose have been put off by six months, and this has brought much relief to the auto sector.
The U.S. dollar index was trading at 97.537 against its peers, while it saw a high of 97.6 yesterday. The Australian dollar was trading at $0.6911 after slipping down to $0.6891, with the unemployment data showing poor performance in the country. The Japanese yen was at 109.47 against the U.S. dollar.
The Asian markets were mixed. Shanghai Composite was up by 0.58 percent, while Stoxx Europe 600 was up by 1 percent.
Thursday morning trade was quite positive for the Dow Jones Industrial Average, which was 219 points higher with a 0.9 percent increase. The Nasdaq Composite Index was up by 96 points at 7.918 and the S&P 500 index was up 31 points at 2,882.
Two important components of the Dow lifted markets. Walmart rose by 4 percent, while Cisco Systems Inc was up by 5.6 percent, beating Wall Street forecasts.