notes, learnings and reflections for future self reference
The following is a list of microchip related companies to consider once the dust settles
The following is a list of Consumer technology companies to consider once the dust settles
During a trade war situation, negative news about one Chinese company listed NASDAQ or NYSE will cause negative price movement of other Chinese companies
Negative news about a negative law suit outcome for a semi conductor causes negative price movement of other semi conductor companies
The following is a list of 19 companies either in the tech sector or with market capitalization above USD20 billion that experienced more than 10% drop in share price on the May, 13th 2019.
Below is the breakdown in terms of price performance on May, 15th 2019.
The 196 pages of Chinese goods to be taxed by the US governments are spread across 6 categories. Where US manufacturers cannot find alternative sources of supplies, price increase of end product will be expected.
Based on what was observed in December. The ability of the US government to sustain the trade war is predicated upon the Feds keeping interest rate low.
The December 2018 US market financial meltdown can be attributed to US government tariffs to reduce demand for foreign material supplies from China coupled with Feds interest rate hike to limit capital needed to boost domestic production.
The trade war seems to serve three purposes:
Tweet was posted in May 3rd 2019 where Chinese import tax hike to 25% from 10% was proposed.
Immediate negative effects were most prominent on Hong Kong and Straits Times stock index. An observed 4.5% drop.
Immediate effects were negligible on the Shanghai index as bad news seems like it was already factored a few days prior to the tweet. An observed 6% drop prior to the tweet.
Effects on the SnP was negligible. An observed 0.45% drop. The London Stock exchange (FTSE) seems to be humming to its own rhythm.
