Over the recent days, financial markets again has been dominated by the ongoing trade war between

Over the recent days, financial markets again has been dominated by the ongoing trade war between U.S. and China. However, prolonged negotiations are just one of many unsolved problems in Beijing. On Sunday, May 5, President of the United States announced on his Twitter account tariffs increase on Chinese products worth 200 billion dollars from 10% to 25%. New duties have been implemented on Friday, May 10. Trump added in his tweet feed that 25% tarrifs on additional goods worth 325 billion dollars may be also imposed in the future. After the announcement, indices in China recorded the strongest declines since January 2016. As it can be seen in the chart below, technology companies dropped by almost 8% (blue line), while the Shanghai Composite Index, consisting of all companies listed on the Shanghai Stock Exchange, lost over 5.5% (red line). In the U.S., at the beginning it looked similar – futures contracts on stock indexes were significantly losing, till the market opening. During the session, however, U.S. indices recovered almost all losses, closing the day slightly below zero. During the following days, investors in the U.S. were slowly losing faith in a quick deal b...