Nasdaq Leads Nikkei 225 and ASX 200 Lower, US-China Talks Postponed
The news today was that China and the United States are “talking” over a trade dispute over Chinese currency manipulation, with China’s central bank and the Federal Reserve to make an announcement on the status of their negotiations in the near future. However, the reality is that there is no deal on the table, as both parties are holding back.
According to a statement by the Chinese Finance Ministry released late yesterday afternoon, the Central Bank of China and the Federal Reserve are in preliminary talks over currency trade. However, according to an article by Bloomberg News, there is “no deal” on the table and they expect no announcement until next month.
However, the State Department has released a statement saying that the United States and China are working to settle their currency dispute. There is no guarantee that the talks can be resolved, especially in light of China’s recent devaluation of its currency against the U.S. dollar.
Nasdaq leads Nikkei 225 down by 0.4 percent, with investors speculating that this could mean that the Japanese company will announce further share price cuts, especially with the economy still under pressure following a huge earthquake and tsunami. If China continues its currency manipulation, this would likely happen, with NASDAQ falling even further.
However, if the talks between the Central Bank of China and the Federal Reserve go as planned, the two sides should be able to reach a joint decision on whether or not to start their negotiations on a possible deal that includes the opening up of currency markets. This is good news for the investors in NASDAQ, especially considering the fact that many analysts had predicted a Chinese devaluation on a number of occasions, but the announcement is not a sure bet. In fact, as many are saying, it will not help the United States trade deficit one bit, as China will continue buying dollars rather than the euro.
The central bank of China has previously stated that it will not be participating in any stock market transactions using the renminbi, stating that it will only participate in stock exchanges in other countries, such as Japan. where the yen has been weakening, such as in the last month’s Nikkei 225 decline. decline, and in the United States where the Dow Jones industrial average has fallen over 400 points.
If Nasdaq follows its usual practice, the news of the talks between the US and China regarding currency trade will be made available to investors by the company’s website, which could come as early as tomorrow, though the stock market may not open at all tomorrow. The Nasdaq may hold off on reporting the news until after the stock market closes for the week of March 24th, but the announcement will surely come as soon as the stock market closes out for the week.
Nasdaq is expected to release details of the upcoming meetings between the United States and China, as well as their discussions, along with a breakdown of how they expect that they will affect the trading in the stock market, with most expecting a new trading system to be put in place prior to the new system taking effect. However, the company is expected to report more details, as soon as possible.
Although some investors believe that the postponement of the talks will result in the stock market losing value, the fact of the matter is that the market will hold its value in the same way as it always has, whether it opens or not, and so there will be no significant impact on the stock market. This means that the United States will still be trading in the dollar, although most investors will be hoping for a stronger exchange rate than the current value.
This is why it is likely that Nasdaq will report the news of the talks between China and the United States on their website as soon as they are made public, with most stock market players expecting the news to be made available before the end of the week, although others, such as those who use ETFs and other trading instruments may be waiting until after the weekend or even after the weekend. For the traders, who make their money on Nasdaq, who have bought their shares long term, they will be glad to know that the delay of the announcement will give them enough time to make their decisions, and avoid the possibility of taking a risk on a weak exchange rate, which they may be forced into because the stock market will not open until tomorrow, or even on the day after.
For the investors, the postponement of the talks is a sign that the stock market is going to remain strong, no matter what happen between the US and China and no matter what occurs in the talks and will continue to be up significantly until the end of the week or the day after the negotiations. This is the right time for investors to continue to buy stocks and hope that the talks come to fruition.