Trade disputes to the fore as markets show weakness
Trade wars and taking a breather may be the themes in China business this week, as equity markets, although looking strong, show signs of needing consolidation.
Hong Kong's market showed signs of tiredness late last week, with the benchmark Hang Seng Index closing 39.24 points or 0.19 per cent down at 20,340.97 on Friday, taking the cue from New York's Dow Jones Industrial Average.
Investors are worried that an interest rate cut may not be a sure thing, in which case corporate expansion and capital expenditure will be more expensive.
Markets, particularly in China, will once again be trying to diagnose the health of the US economy from this week's government data. March retail sales will be released today, and last month's consumer price index will be out tomorrow.
It may become harder for US consumers to find 'Made in China' products if the trade spat between the US and China escalates further. The row, which centres on subsidies, copyright infringement and a lopsided trade imbalance, is likely to cause further ripples through this week's markets and business developments.
