On Monday, the dollar index was ranging above 93 level as the US markets were closed for the Labor Day holiday. Gold price was also entering into a range around $1930 level.
Still, the market focused on President Trump as he once again raised the idea of “decoupling”, saying that the US may separate its economy with China, meaning no more business between both countries, the world’s two biggest economies.
Trump also stated that his administration will make America become a manufacturing superpower of the world, end the reliance on China, bring jobs back from China to the US, prohibit federal contracts outsourcing to China, impose taxes on those companies investing in other countries.
During the weekend, it is reported that Trump administration is considering to add China’s top chipmaker “SMIC” to a trade blacklist. The stock price of this semiconductor manufacturing giant plummeted over 20% on Monday in Hong Kong Stock Exchange.
ZFX analyst Jacob Leung said that we can see that everything over the tensions between China and the US is escalating. In the coming weeks, before the US election, it is expected that China-US relations will keep deteriorating no matter in economic, political, military and technological aspects.