STI and HSI Red Amidst the Trade War

A short read today showed that the STI plunged 2% due to escalating tensions in the US-China trade war. This could be contributed to the tariffs which Trump promised on Friday, which includes a 10% tariffs on US$300 billion worth of goods. On the contrary, the Federal rate cut did not give the expected stimulus to the stock market, which might not be unexpected as based on current market conditions, a rate hike should have been more logical.

As I am very interested in the STI constituents, I decided to see which stocks were bearing the brunt today.

The first stock is SIA which is hovering near its 52-week low of 9.01. At this point of writing, its current price is 9.02.

The second stock (which I have mentioned before) is SATS which is hovering near its 52-week low of 4.55. At this point of writing, its current price is 4.74.

Other notable stocks include DBS which had a 3.2% drop today.

Another point of interest will be the HK market, where today, 5th of August, is notably the biggest strike in Hong Kong's history. I think it is a double whammy for HK as they have to deal with the twin reasons of the trade war and the ongoing protests.

I am currently looking at Bank of China, which has broken its previous 52-week low of 3.19 to 3.05, which makes it even more appealing to go in. (Let us bear in mind that BOC is actually based in China and is just a H-share) I will be looking at other HK banks but I will be probably avoiding those banks based in HK such as the BOC (HK) holdings and Hang Seng Bank etc.

Just a superficial thought.

Next US President- How will Financial Markets Fare?

The 2020 US election is coming and I am sure this is important as it will bring about effects to the financial markets.

As much as Trump is controversial, his policies have been beneficial to the US market with the tax cuts that were recently implemented, which brought an influx of corporate money into the markets. He might be lacking in other moral areas such as 'climate change being a hoax' and his womanizing but undoubtedly, his tax cut policies have benefited the stock market. The only risk he is bringing to the US markets is his constant threat of trade wars and his volatility of positions on certain pertinent issues.

Other popular politicians include Bernie Sanders, who is a 'socialist', and advocates for more socialist policies such as Medicare for All and minimum wage. He even proposes high taxes on Wall Street to cover the rising student debt. Morally, I will agree with his policies, but from a financial market perspective, if he is elected, I believe the market will spiral downward due to higher taxes imposed.

I am not too sure about the other candidates, but I believe Joe Biden will just be a mere continuation of the Obama days (which probably means less trade wars) which is good. I am not sure if Bernie will ensue trade wars with China though.

What do you all think?

Reading Financial News

Recently, I got hooked into reading financial news and I would love to hear about where y'all might read news (if it interests you).

I have been reading a few websites.

1) CNBC Finance

2) Marketwatch

3) Bloomberg

4) Reuters

5) Barrons

I am also thinking if I should get a paid subscription too, because for example Bloomberg limits 10 articles per month.

What's your take?