Asian markets rise as weaker yuan eases fear of more tariffs

Donald Trump Xi Jinping

Donald Trump Xi Jinping

World markets are mixed after U.S. President Donald Trump said he might impose more tariffs on Chinese goods, though he said he was ready to strike a "great deal" with Beijing over trade. The report cited unnamed sources who said the tariffs could cover imports from China that have not already been hit by tariffs, amounting to up to $257 billion worth of imports.

USA officials are preparing for such a scenario in case a planned Trump-Xi meeting yields no progress on the sidelines of a Group of 20 summit in Buenos Aires in November, according to two of the people, who declined to be identified to discuss internal deliberations.

This was the nail in the coffin for today's equity bounce.

Bloomberg Economics estimates that the drag on 2019 GDP growth could be about 1.5 percentage points assuming a tariff rate of 25% on all Chinese imports.

Full story at Bloomberg.

He said he has 267 billion dollars of new tariffs waiting to go if he can not make a deal with China.

USA stocks fell, with the S&P 500 flirting with a correction as technology shares tumbled after a report the Trump administration was set to press its trade war with China.

Hong Kong's Hang Seng Index fell 0.9 percent Tuesday, while the Shanghai Composite Index rose 1 percent.

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He can refuse to go along with Trump's demands-allowing him to save face domestically by standing up to America-or he can offer a new deal, giving Trump more fodder for tweets that humiliate China's attempt to work with the U.S.to end the trade war.

They would be on top of the United States dollars 250 billion already imposed.

USA equity futures advanced on Wednesday and European stocks jumped, tracking a rebound across Asia as the worst month for global equities in six years draws to a close.

The slowdown in the second largest economy in the world occurs on the background of a trade war between the USA and China.

Amazon.com dropped 6.3% to $1,538.88.

China has retaliated with its own tariffs against U.S. goods, but continues to maintain that there can be no winners in a trade war. Asian shares were mostly higher on Tuesday as traders took the weaker yuan as a sign that Chinese exports can remain competitive even if a trade dispute with Washington heats up.

All sectors on the TSX lost ground on Monday, led by cannabis-heavy health care which was down more than 10 per cent. Aphria Inc. closed down 17.35 per cent, Canopy Growth Corp.

The Canadian dollar traded at an average of 76.23 cents USA, its lowest level in almost seven weeks, and compared with an average of 76.29 cents United States on Friday.

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