Chinese index contracts are losing today in the shadow of declines on Wall Street indices and the strength of the US dollar, supported by JOLTS data. Declines on CNH.cash have already reached more than 3%. According to U.S. officials quoted by Reuters, the U.S. is expected to work hard in October on further restrictions on technology exports to China.
US - China trade wars to continue?
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The upadting restrictions will inlcude chips needed for AI development and the precision tools important to produce them. The U.S. Export Restrictions Act was first published collectively by the US Department of Commerce in 2022, and is now set to receive a comprehensive update. China has already indicated that it strongly opposes US pressure on national security issues. The crisis in mutual relations between the two superpowers remains one of the significant factors undermining sentiment around investment in China.
- In a recent interview, BlackRock CEO Fink indicated that the Chinese are choosing not to spend even approx. 50% of their revenues out of concern for the country's economic prosperity and political situation. In August, China responded to U.S. policy and warned of restrictions on U.S. investment. The full list of US export restrictions is expected to be released after the Asia-Pacific Economic Cooperation (APEC) summit in November, in San Francisco.
Looking at CHN.cash futures contracts, we can see that Chinese benchmark felt down down to 5908 points levels last seen in November 2022.
Source: xStation5
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