The Direxion Daily FTSE China Bear 3x Shares ETF (YANG) is experiencing upward movement as global markets react to new tariffs imposed by the U.S. President Donald Trump. On February 3, 2025, Trump announced a 10% tariff on Chinese imports, alongside 25% tariffs on goods from Canada and Mexico. This move has heightened fears of a trade war, leading to a risk-off sentiment in global markets. The tariffs are expected to have a modest direct impact on China's economy, according to Commerzbank Research, but the broader implications for global trade and economic growth are causing concern among investors.
The announcement of these tariffs has led to a significant sell-off in U.S. and European equity markets. As of 9:58 AM EST, the Dow Jones Industrial Average had fallen by 613 points, or 1.4%, while the S&P 500 and Nasdaq Composite dropped by 1.6% and 1.9%, respectively. The ripple effect of these tariffs has also been felt in the currency and commodity markets, with the ICE U.S. Dollar Index rising by 0.8% and WTI crude oil increasing by 1%. The Chinese government has indicated plans to file a lawsuit with the World Trade Organization in response to the tariffs, adding to the uncertainty and volatility in the markets.
The YANG ETF, which benefits from declines in the Chinese stock market, rose to $61.09, marking a 2.11% increase from its previous close.