Financial Markets and Trade Dynamics

Financial markets are shifting, with some Chinese property developers going out of business. There are also worries about trade relations, as seen in the US’s cautious approach to tariffs and New Zealand Prime Minister Luxon’s comments on the need for relief. Foreign exchange trading is risky and can lead to big losses. It’s important for people to know their risk level and only invest money they can afford to lose. InvestingLive offers information but does not give personalized investment advice. Readers should analyze their own situations and think about the risks before making any financial decisions. As of August 11, 2025, there are clear signs for derivative traders in the weeks ahead. There’s a strong push for China to increase soybean orders, which is boosting agricultural commodities. Soybean futures (ZS) have already risen over 8% in the past month, with prices now above $17 per bushel—levels we haven’t seen since mid-2024. China’s economy continues to struggle, with another property developer going under, so caution is advised for industrial metals. This follows the trends from the early 2020s, including issues with companies like Evergrande, pointing to a long-term problem affecting global demand. Copper prices have fallen to around $8,200 per tonne, making shorting industrial commodities or currencies like the Australian dollar a smart strategy.

Impact of Global Events on Energy and Technology

In technology, a proposed 15% export tax on chip sales to China poses a direct threat to revenue for major semiconductor companies. This situation is creating challenges for the Nasdaq 100, which is down nearly 3% this quarter. We recommend buying protective put options on the QQQ ETF to guard against a larger tech market downturn if these tariffs are implemented. Geopolitical tensions are also increasing, particularly involving Iran and the ongoing war in Ukraine. This environment is supporting energy prices, with WTI crude staying above $95 a barrel. Given the likelihood of unexpected supply news, we see value in long-dated call options on crude oil futures to take advantage of potential price increases. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now