General, Indices, Cryptocurrencies

Weekly review: Trade war intensifies as Uber ‘stalls it’ on opening day

Ben Weiss, Friday, 10 May 2019

The UK largely had a positive week last week. Not only was young Archie Harrison Mountbatten-Windsor born, but Tottenham and Liverpool also pulled off remarkable European comebacks. Albeit, the UK100 was down, presumably following the effects of the trade war, but in retrospect it got off lightly. Unfortunately, the same cannot be said for our trans-Atlantic neighbours and their indices, with the Dow, NASDAQ and S&P 500 all fully feeling the brunt of the trade war.

Uber app

 


Indices down as trade war intensifies

It was all going so well; too well perhaps. It was widely reported that President Donald Trump and Chinese leader Xi Jinping had/were having a strong relationship, no additional tariffs were being imposed and an end to the economic war of two global superpowers seemed to be in sight. That’s when things turned, and the markets were absolutely devastated.

All the major US indices were down, as well the Nikkei 225 and Hong Kong 50. Equities weren’t safe either. Some have blamed Apple for the trade war itself, and while that is debatable there’s no doubt they are heavily susceptible to any escalation in the trade war given its reliance on the Asian market. Apple’s price fell drastically, with its market value said to have been hit to the tune of $75 billion.

What actually happened is not 100% clear, but reports are that China went back on a previously agreed deal, causing Trump to instantly implement tariff hikes. China has since retaliated themselves by imposing tariffs on US imports, and now this tit-for-tat looks set to continue.

Can the two largest economies in the world come to some sort of an arrangement in the near future, or will the tensions continue further – very much to the detriment of the global economy? The two are expected to meet next month at an international summit, so perhaps more answers will be provided then.

 

Uber’s opening-day shocker on the market

We’ve all had bad days, but Uber’s was definitely worst than most on Friday. It should have been a day to celebrate for CEO Dara Khosrowshahi and co. but amidst mass protests across the globe from their disgruntled workforce, as well as frequent mentions of Uber’s distinct absence of profit since its inception, the rideshare company had an absolute shocker as it went public.

With so much anticipation building up to the IPO, perhaps it was the expectation that killed Uber – after years of resisting the cries for it to go public. Either that, or the fact that traders saw little potential returns from an investment in Uber over the coming months or years.

Its price ultimately fell 7.6% by the end of trading, signifying the worst opening day for a major IPO in history. Will ‘UBER’ be able to recover? Trade it on our award-winning platform.

 

Bitcoin boom

A lot has been said about Bitcoin making a comeback, but the more its price rises, the less it becomes simply a short-term phase and the more it becomes a long-term trend. It ended the day around the $6,300-mark, with an upward trend continuing since the start of the year. It feels like something is brewing; is that long-awaited return back to a five figure price close for Bitcoin?

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