China-India border tensions spark trade friction in 5G and autos – Nikkei


The Nikkei's Asian Review has reported on the border crisis between China and India.

The article states that the crisis has begun to spill over into bilateral trade as the Indian government considers imposing restrictions and higher tariffs on Chinese companies and goods.

Lead paragraphs

Measures include a directive against the use of telecommunications equipment from Huawei Technologies and other Chinese suppliers. China's auto sector is also being targeted.

After the first deadly clash between the two Asian giants in 45 years, India's Prime Minister Narendra Modi can ill afford to look weak in front of China. But shutting out Chinese investment risks hurting India's already weak economy.

Market implications

These developments are pertaining to a standoff in the Himalayan border region that began in early May between Indian and Chinese troops. A pushback in trade and investment will weigh on an already suffering Indian economy, especially in the manufacturing sectors which cannot operate without access to Chinese-made products and likely stem flow into the nation's currency. 

The Indian economy is at the brink of crisis stemming from the coronavirus pandemic.  The International Monetary Fund (IMF) has recently downgraded forecasts for India's economic growth for 2020 to negative 4.5%, marking the possibility of the worst slump since the oil crisis of the late 1970s.

USD/INR at critical support and bears look to prior structure

A continuation below the 61.8% Fibonacci and break of support opens risk to a full retracement of the daily impulse and a test of the trendline.

 

 

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD resumes slide below 1.0500

EUR/USD resumes slide below 1.0500

EUR/USD gained modest upward traction ahead of Wall Street's opening but resumed its slide afterwards. The pair is under pressure in the American session and poised to close the week with losses near its weekly low at 1.0452.

EUR/USD News
GBP/USD nears 1.2600 as the US Dollar regains its poise

GBP/USD nears 1.2600 as the US Dollar regains its poise

Disappointing macroeconomic data releases from the UK put pressure on the British Pound, yet financial markets are all about the US Dollar ahead of the weekly close. Demand for the Greenback increased in the American session, pushing GBP/USD towards 1.2600. 

 

GBP/USD News
Gold pierces $2,660, upside remains capped

Gold pierces $2,660, upside remains capped

Gold (XAU/USD) puts pressure on daily lows and trades below $2,660 on Friday’s early American session. The US Dollar (USD) reclaims its leadership ahead of the weekly close, helped by rising US Treasury yields. 

 

Gold News
Broadcom is the newest trillion-dollar company

Broadcom is the newest trillion-dollar company Premium

Broadcom (AVGO) stock surged more than 21% on Friday morning after management estimated on Thursday’s earnings call that the market for customized AI accelerators might reach $90 billion in fiscal year 2027.

Read more
Can markets keep conquering record highs?

Can markets keep conquering record highs?

Equity markets are charging to new record highs, with the S&P 500 up 28% year-to-date and the NASDAQ Composite crossing the key 20,000 mark, up 34% this year. The rally is underpinned by a potent mix of drivers.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures