Due to America’s conflict with China and Iran, traders might have to suffer with volatile environment during this summer. Many investors fear that due to geopolitical tensions global economy might take a major hit.
Abi Oladimeji said that leading indicators have turned down and there is a possibility for negative shocks in the share market. By the end of this week Trump and Jinping will meet in Japan during G20 summit where they will talk over trade negotiations. At present, it is unclear whether the meeting would provide any fruitful results or not.
Many analysts stated that truce on trade war between US and China is unexpected during the G20 summit, but Donald Trump would not impose any more tariffs on Chinese products for now. Analysts also stated that the trade negotiation might result after equity markets weaken further.
Due to recent tensions between US and Iran, crude oil prices have soared, which can even result in supply disruptions. As per the report, US crude oil and Brent gained 9% and 5% respectively. The conflict started to develop when US accused Iran for attacking its oil tankers in Strait of Hormuz, to which Iranian officials had denied the accusations. Then recently, Iran had shot down a US drone which it claimed was flying in its airspace. Contrary to this American spokesperson stated that the drone was flying in the International Airspace.
On Thursday, Nike had presented its earnings and the Company has attained a total gain of 7% during last quarter. Moreover, it is also facing an overall rise of 7% in North America. While addressing the reporters, CEO of Nike said that women have started to showcase more interest in sneakers. Nike has started to increase sneaker production for female population. Meanwhile, investors are also eyeing on global metrics where the Commerce Department of US is set to release the estimated, first quarter GDP’s figures on June 27, 2019.