FXEM - EMPIRE MARKETS - Company New Article
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Jun 12, 2025
US-China trade tensions reach the EU
Washington targets Brussels while keeping pressure on Beijing
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Reuters and the Financial Times reported that the United States is moving to expand its protectionist policies to include European Union products, including agriculture, cars, and technology, while its trade war with China continues. This development indicates a shift in tensions from bilateral (US-China) to multilateral (including Europe), reflecting a shift in the contours of the global trading system. |
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Impact of the News on Markets:
1. Currencies (Forex):
US Dollar (USD):
May receive some support in the short term due to protectionist sentiment, but political risks could undermine confidence in the medium term.
Euro:
Negative for the EUR due to the potential decline in European exports to the US market, weakening economic growth in the Eurozone.
Chinese Yuan:
Remains under pressure due to the ongoing trade war, and the central bank may intervene to support stability.
2. Commodities:
Gold:
The news supports demand for gold as a safe haven amid rising geopolitical and economic concerns.
Oil:
Relatively negative, as trade tensions weigh on the outlook for global demand, potentially weakening prices.
Wheat and Industrial Metals:
Some agricultural and metal commodities may be affected by new export and import restrictions.
3. Stocks:
US Markets (S&P 500, Nasdaq):
Mixed impact — Large technology companies may be pressured by the trade slowdown, while some domestic companies benefit from tariff protection.
European markets (DAX, CAC):
Very negative, especially for auto and technology companies, due to the potential loss of US markets or the imposition of tariffs.
4. Cryptocurrencies:
Bitcoin and Ethereum:
The news may support crypto's role as an "alternative asset" during times of stress, with the potential for increased demand as a hedge against volatility in traditional markets.
Final conclusion:
The news represents a major strategic shift in the global trade landscape, and will have a mixed impact on markets.
- Positive for gold and cryptocurrencies
- Negative for the euro and some commodities
- Mixed impact on stocks and the dollar
- Sources: