The stock exchanges in New York are expected to take a step back on Thursday. In doing so, Wall Street follows the example of exchanges in Asia and Europe, which are also suffering from the rising trade tensions. The price drop of Tesla will probably continue on Thursday. The automaker is standing for its seventh loss in a row.
The increasing trade conflict between China and the US has always held the stock markets in their grip. US President Donald Trump threw oil on fire earlier this month by raising import rates. That was just when a potential trade deal was taken into account on the financial markets. China hit back with the same currency.
Various experts have become more pessimistic about the chances that things will work out well between China and the US. According to China, the Americans must correct their ‘wrong actions’. Only then will Beijing be prepared to resume trade talks.
Furthermore, the concerns about Tesla are piling up. This time it is Morgan Stanley and Loup Ventures analyst reports that the stock market value of the automaker will not do well. Tesla lost more than a quarter of its value in one month. Among other things the trade tensions are bothering the automaker, who is largely dependent on Chinese consumers in terms of sales.
Electronics chain Best Buy also came with figures. Comparable store sales were higher than what was taken into account.
Aircraft maker Boeing is also in the spotlight. The company appears to have completed the modifications to the challenged 737 MAX devices. The question is when supervisors will agree with the update. According to various reports, this can be a long-term process. In the meantime, more and more airlines are turning to Boeing for compensation for damage suffered.