Stock markets across the world sprang higher Tuesday following a conciliatory speech by Chinese President Xi Jinping that reassured investors a trade war with the United States could be avoided. Following boosts to stock market indices across Asia and Europe, U.S. benchmarks also shot higher, with the Dow up more than two percent approaching midday. "U.S. stocks are higher in early action, with trade war concerns being tamped down by a conciliatory speech from Chinese President Xi, though uncertainty toward the White House continues to fester," Charles Schwab analysts said in a note. Xi, in a speech at the Boao Forum, pledged on Tuesday to lower tariffs on auto imports this year and take other steps to open the world's number two economy "wider and wider," addressing major complaints by the United States in an escalating trade row. The comments follow a series of tit-for-tat threats by the U.S. and China to impose retaliatory tariffs on one another that have rattled markets in recent … [Read more...] about Markets rise as Xi calms trade war fears
Trade wars
US China trade war fears escalate as threats ramp up
US-China trade war fears escalate as threats ramp up Trump remained defiant and argued the pain of the dispute will pay off in the end, while China said that his administration would only "shoot itself in the foot" if it didn't back down from the "extremely wrong" threats. Treasury Secretary Steven Mnuchin acknowledged there was a risk of a trade war, but said the intention is to defend US interests and the administration remains willing to negotiate. But top White House economic advisor Larry Kudlow reversed himself, and warned that the tariff threat is not a negotiating tactic. Global stock markets were unhappy with the turn of events, as Wall Street dropped more than two percent, following European and Asian markets lower. In the wake of the decision to impose steep tariffs on steel and aluminium imports, the United States on Tuesday published a list of US$50 billion in Chinese goods to be hit by tariffs over what Washington says is widespread theft of intellectual property and … [Read more...] about US China trade war fears escalate as threats ramp up
‘Not in a trade war with China’ says Trump
President Donald Trump on Wednesday (Apr 4) said the United States is not in a trade war with China, as both sides shake global markets with tit-for-tat actions. US President Donald Trump. (Photo: AFP/Olivier Douliery) "We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S.," Trump said in a morning tweet. "Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue!" The comments come after China unveiled plans to slap major US exports worth US$50 billion - including soybeans, cars and small airplanes - with retaliatory tariffs. The Chinese action was, in turn, in response to the Trump administration's own US$50-billion list of Chinese products that face US tariffs over Beijing's alleged theft of intellectual property and technology. The last month has seen the mercurial Republican leader rattle markets in announcing … [Read more...] about ‘Not in a trade war with China’ says Trump
Trade war fears push Asian stocks lower
Asian stocks dropped sharply at the open on Tuesday (Apr 3), following Wall Street lower as fears of a trade war between the United States and China battered market sentiment. Traders came back from the Easter holiday in bearish mood AFP/Drew Angerer Tokyo led the declines, with the benchmark Nikkei 225 index shedding 1.51 per cent in early trade. China followed suit, with the main Shanghai Composite Index falling 1.05 per cent. Seoul was down more than half a percentage point and Hong Kong was off one percentage point. Traders were spooked by Chinese retaliatory action on trade with the US, as the government in Beijing slapped tariffs on 128 US imports worth US$3 billion, including fruit and pork. In addition to that move, US President Donald Trump again threatened to tear up the North American Free Trade Agreement, tweeting that Mexico was doing too little to counter illegal immigration into the United States. Investors also took their cue from US markets which tumbled on … [Read more...] about Trade war fears push Asian stocks lower
Stocks slide, yen rises in flight to safety on trade war anxiety
Asian stocks extended a global selloff and the yen rose on Tuesday as investors fled for safety as an escalating trade spat between the United States and China and a renewed slump in tech shares such as Amazon.com sapped investor confidence. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.28 percent pressured by the tech sector. Japan's Nikkei slipped 1.1 percent while South Korea's KOSPI index skidded about 1 percent with Samsung Electronics down more than 1 percent. Australian shares were off 0.3 percent. The losses in tech shares came after U.S. President Donald Trump attacked Amazon.com over the pricing of its deliveries through the United States Postal Service and promised unspecified changes. Investors were also on the backfoot as China imposed extra tariffs on 128 U.S. products, deepening a dispute between the world’s two biggest economies and stoking concerns about the impact on global growth. Fears of a full blown trade war became a clear focus in … [Read more...] about Stocks slide, yen rises in flight to safety on trade war anxiety