China Internet Nationwide Financial Services Inc (NASDAQ: CIFS) is having an incredibly strong start to the trading session this morning. However, if you’re digging for news, there’s not much out there.
Nonetheless, there’s a very good reason for the gains. Today, we’ll talk about:
- Why CIFS stock is headed for the top;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Here’s Why CIFS Is Climbing
As mentioned above, China Internet Nationwide Financial Services is flying in the market this morning, but there’s not much news that’s company specific out there. Ultimately, the gains aren’t the result of company specific news. Instead, macroeconomic news seems to be driving the gains.
Over the weekend, a breaking story suggested that the United States and China are very close to reaching an agreement in the midst of the trade war. Of course, that would be good for CIFS as well as other companies in China and in the United States.
After all, should the trade war come to an end, sanctions planced on both sides of the coin would be removed. In particular, the sanctions imposed by the United States on China have led to economic concerns. However, should these sanctions be lifted, we could expect to see somewhat of an economic boom in the region.
The benefits of this news for CIFS are obvious. The company is centered in the financial sector. This sector is ultimately at the mercy of economic conditions. So, with the prospect of removed sanctions ahead, investors are excited about the potential growtht in revenue that the company could see should sanctions be lifted and economic conditions improve.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of China Internet Nationwide Financial Services, the company hasn’t released any news of its own. However macroeconomic news seems to be moving the needle here.
As investors continue to speculate that the trade war is coming to an end, it will lead to improved economic conditions in China and that the company will be a prime beneficiary, the stock is rockerting.
As is just arobut always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:10), CIFS is trading at $6.26 per share after a gain of $3.01 per share or 92.62% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CIFS. In particular, we’re interested in following the story surrounding the company’s growth as the trade war seems to be coming to a halt. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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