AK Steel Holding Corporation (NYSE: AKS) is having an incredibly rough day in the market today, and that is largely fueled by politics surrounding steel. Ultimately, there’s a lot going on in politics surrounding commodities since President Trump has been in office, and these political concerns are reaching a boiling point. As a result, fear is striking investors, leading to declines in the value of the stock and prompting our partners at Trade Ideas to alert us to the losses. At the moment (10:43), AKS is trading at $5.90 per share after a loss of $0.28 per share or 4.46% thus far today.
AKS Feels The Pain Of A Potential Trade War
As mentioned above, AK Steel is having a rough time in the market today as a potential trade war leads to concerns for the steel industry. You see, President Donald Trump wants to impose restrictions on steel imports in the United States; following up on one of his most popular campaign promises. Ultimately, if these types of restrictions are imposed, supply in the United States would likely find balance, increasing the price of steel and benefiting workers in the steel industry. However, these restrictions will be met with serious implications.
Today, news is breaking that European leaders are speaking out against the potential restrictions. In fact, they are going as far as to threaten that if steel import restrictions are imposed, we could have an all out trade war. As a result, there is now less of a chance for these restrictions to take place, which is leading to some pain for US steel companies like AKS. In a recent statement, Germany’s Angela Merkel had the following to offer…
“We are all familiar with the great global challenges… We all know that time is of the essence and pressing solutions can only be found if we are ready to strike a compromise, if we accommodate each other’s views without bending over backward too much and giving up principles.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on AKS. In particular, we’re interested in following the steel industry and how President Trump reacts to statements made by European leaders. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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