Saturday, 15 December, 2018

Donald Trump expects 'great deal' with China over trade

Stocks dip again on worries about tech tariffs Modal Trigger Getty Images
Nellie Chapman | 01 November, 2018, 20:15

China and the United States are now engaged in a trade row which was triggered by the USA slapping 25- and 10-percent tariffs on steel and aluminum imports, respectively, from China in April.

ANALYST'S TAKE: With new restrictions on a Chinese semiconductor maker, the "U.S. has escalated its trade war with China in an unexpected way", Chang Wei Liang of Mizuho Bank said in a commentary.

The Nasdaq composite, which is heavily weighted with technology stocks, lost 116.92 points, or 1.6 percent, to 7,050.29.

And Mr Trump said: "I have $267 billion waiting to go if we can't make a deal".

Trump and Chinese President Xi Jinping are expected to meet on the sidelines of next month's G20 summit in Buenos Aires.

"The trade war remains an overhang on the markets, and the news today signals further escalation rather than de-escalation", she added. Still, the index is down almost 10 per cent for the month.

Last week The Wall Street Journal reported that the U.S.is demanding that China produce a "concrete proposal to address Washington's complaints about forced technology transfers and other economic issues". Italy's FTSE MIB index rose 1.9% after Standard & Poor's did not downgrade its credit rating. He said 70% of voters opposed the $13-billion project. Trade-sensitive industrial shares rose almost 1.2 per cent in mid-morning trading.

The Nasdaq 100 rose 1.4 percent. Stocks climbed earlier this month after Bolsonaro led the previous round of voting, as investors preferred him to leftist parties.

The price of USA crude oil fell 0.8% to $67.04 a barrel in NY.

Benchmark 10-year notes last fell 4/32 in price to yield 3.1 percent, from 3.087 percent late on Monday. Natural gas was unchanged at $3.19 per 1,000 cubic feet.

Gold futures sank 0.1 percent to $1,226.30 an ounce.

USA crude fell 1.06 percent to $66.33 per barrel and Brent was last at $76.30, down 1.34 percent.

The Stoxx Europe 600 Index failed to sustain momentum from Asia - it opened higher after good earnings for BP and Volkswagen, but corporate results were mixed overall before ending little changed.

CURRENCIES: The dollar strengthened to 112.95 yen from 112.37 yen late Monday.

The British pound dipped 0.5 percent to $1.2732. Hong Kong's Hang Seng bucked the trend, slipping 0.9 percent to 24,585.53.