The trade war has depressed the manufacturing activity in China and the US. The Caixin China General Manufacturing PMI fell to 49.4 in June.
On July 1, we saw several semiconductor stocks rally. The VanEck Vectors Semiconductor ETF rose 2.8%, while the iShares PHLX Semiconductor ETF rose 4.4% on the day.
The G20 summit started on June 28. President Trump and Indian Prime Minister Modi had a bilateral meeting.
Stocks have rebounded after last month’s sell-off. Intel, Broadcom, Micron, and Qualcomm have risen 9.4%, 12.9%, 16.7%, and 13.2%, respectively, in June.
The six-day winning streak of the benchmark Shanghai Composite Index was broken today as the index fell 0.87% to close at 2,982.07. This was the longest winning streak in over a year for the index, which has gained 19.6% so far in 2019.
Markets are expecting the Federal Reserve to cut rates this year after gradual increases since 2015. While broader markets rose after the Fed took a dovish approach in last week’s meeting, does the central bank have the pill to address a slowdown?
According to an unpublished Federal Register notice, the United States has added Wuxi Jiangnan Institute of Computing Technology, Sugon, and Sugon's three affiliates to the “Entity List.” The Entity List is a list of companies that US firms cannot sell technology to without government approval.
US President Donald Trump is reportedly considering imposing a requirement that 5G equipment used in the United States must be manufactured outside China. Just last month, Trump barred Huawei from doing business with US companies without prior approval.