EXV5 - DAILY CHARTHi, today we are going to talk about the ishares stoxx europe 600 automobiles & parts ucits ETF and its current landscape.
The EXV5 ETF, that tracks the performance of an index composed of companies from the European Automobiles & Parts sector, gain the attention of the market today due to the good news coming from the U.S. The European Union received yesterday positive news, as reported that U.S President Donald Trump it's expected to announce another delay of 6 months on the decision on whether to impose tariffs on EU auto imports. Since Trump administration, it's close to the deadline of Nov.13 to make the decision. If this decision for a delay turns real, Trump would have the possibility to have the decision over the matter in the middle of 2020 where could work as a tool for an election campaign or even as a form to influence Brexit if the divorce doesn't get close on its Jan.31 deadline. Despite the fact that the EU Trade Commissioner Cecilia Malmstrom has made threats of the possibility of the EU engage in a trade war with the U.S, it's clear that the European Union would prefer a complete dismantling of the tariffs threats since it hasn't the China power to bargain with the U.S at the same level.
Overall, always decisions that go towards a direction easing off the tensions between economies, are taken as a bullish one to markets, and that should be different for this one. However, since Trump administration has been notably unstable on its decisions, we must keep an eye open for Trump speech at the New York Economic Club by lunchtime ( 12 P.M - EST), where he can approach this matter, and the ongoing negotiation with China, which is set to sign the partial trade deal in December in a unknown location.
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