What’s going on here?
China and Hong Kong markets stumbled this week, panicked by potential US tariffs that threaten global economic stability, hitting tech and semiconductor stocks hardest.
What does this mean?
China’s major stock indices, the Shanghai Composite and the CSI300, dropped by 0.71% and 0.55%, with notable declines in semiconductors and energy sectors, down 2.1% and 1.5%. Hong Kong’s Hang Seng and Hang Seng China Enterprises followed suit, dipping 0.89% and 1.1%, led by a 1.7% fall in tech giants. This tension is fueled by US plans for a 25% tariff on auto imports and upcoming tariffs in April, with sagging investor morale as noted by Morgan Stanley. Further regional shifts were seen in MSCI’s Asia ex-Japan index and Japan’s Nikkei, both losing 0.71% and 2.33%, underscoring widespread unease.
Why should I care?
For markets: Tariff threats shake market confidence.
US tariff proposals have made investors wary of Chinese and Hong Kong stocks, as reflected in falling trading volumes. This highlights broader worries about market stability and growth prospects, as traders consider the possibility of retaliatory measures disrupting supply chains and impacting sectors like technology and semiconductors.
The bigger picture: Ripples across the globe.
The US’s tariff stance is part of a broader narrative of evolving trade policies influencing global markets. Significant tariff implementations may heighten global economic tensions, affecting export-reliant industries worldwide and potentially prompting a reevaluation of trade partnerships. This uncertainty is already affecting market dynamics across Asia, with notable declines not only in China and Hong Kong but also in regional indices like Japan’s Nikkei.
SPONSORED BY BITCOIN DEPOT
This bitcoin ATM could potentially spit out some serious cash one day
Regular ATMs are everywhere you go, but bitcoin ATMs are harder to come by – for now.
Bitcoin Depot is changing that. It’s already rolled out 8,400 bitcoin ATMs, leading the way in a global market that’s got plenty of room for expansion.
Nearly 90% of those crypto ATMs are in the US – and though there’s lots of untapped growth in the country, this firm is going global too. And a market of that size makes this a serious growth play.
Unlike crypto exchanges, Bitcoin Depot’s revenue doesn’t depend on bitcoin being in an upswing. Instead, it makes money on transactions. And there are lots of those: over $3 billion so far.
What’s more: the company is partnering with big convenience store retailers, setting the stage for scalable growth. That’s a sweet follow-up to the $573 million in revenue it made last year.
Crypto ATMs only make up 1% of the worldwide count so far, so investors could use this pick-and-shovel play to invest in a crypto opportunity that hasn’t hit the ceiling yet.
Finimize and its principals have no ownership in Bitcoin Depot. Investing is inherently risky and capital is at risk. Past performance is not indicative of future results.
