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The US administration has been accused of sending mixed signals, sowing confusion and generating volatility in the financial markets, according to Greg Gibbs, Analyst at Amplifying Global FX Capital.  

Key Quotes

“They may have set a new bar on this front today with comments by Treasury Secretary Mnuchin saying on Twitter that, “On behalf of @realDonaldTrump, the stories on investment restrictions in Bloomberg & WSJ are false, fake news. The leaker either doesn’t exist or know the subject very well. Statement will be out not specific to China, but to all countries that are trying to steal our technology.”

“Later Trade Advisor Peter Navarro said on CNBC that the market was over-reacting, and the Administration has “no plans to impose investment restrictions on any countries”.”

“Both of these statements contradict the 29 May White House statement released on its website that said, “To protect our national security, the United States will implement specific investment restrictions and enhanced export controls for Chinese persons and entities related to the acquisition of industrially significant technology.   The proposed investment restrictions and enhanced export controls will be announced by June 30, 2018, and they will be implemented shortly thereafter.”