BEIJING (AP) — Global stocks sank Wednesday after U.S. President Donald Trump threatened more tariff hikes on Chinese imports if talks aimed at ending a trade war fail to produce an interim agreement.
Market benchmarks in London, Frankfurt, Shanghai and Tokyo declined. Wall Street looked set to slip.
Trump said Tuesday that an agreement on the “Phase 1” deal announced last month “could happen soon.” But he warned he was ready to raise tariffs “very substantially” if that fails.
The two sides disagree publicly about whether the U.S. agreed to roll back some punitive tariffs imposed in the fight over Beijing’s trade surplus and technology ambitions. The Chinese government said last week that was settled, but Trump denied that.
Trump’s comments “served as a reminder of the challenge that the two sides face,” said Jingyi Pan of IG in a report. However, she said, investors saw them as “positioning statements,” reducing their impact.
Trump stress-tests Thune’s Senate majority with record-breaking year
Health insurers drift leftward in campaign donations even as they seek to sway GOP
GOP Rep to Force Vote on Expelling Ilhan Omar from Congress
DC pipe bomb suspect says someone needed to ‘speak up’ about stolen election claims
Marjorie Taylor Greene criticizes Trump’s meetings with Zelenskyy, Netanyahu: ‘Can we just do America’
Tim Walz pushes back on Minnesota fraud allegations following viral daycare video
Ilhan Omar’s Somaliland stance slammed as Minnesota fraud scandal deepens
Trump, Zelenskyy say Ukraine peace deal close but ‘thorny issues’ remain after Florida talks
ICE delivers ‘greatest gift of all’ with Christmas arrests of convicted criminals across multiple states
Major cities see violent crime surge as national rates plummet significantly in 2025: survey
Deadly helicopter collision in New Jersey kills one, critically injures another
Is This Legal?: Leftist Group Recruits Military Officials to Turn Against Trump’s Drug Cartel Strikes
Charlie Kirk’s killing, Idaho murders plea and Karen Read verdict: Inside 2025’s biggest crime moments
FBI surges resources to Minnesota as Patel calls $250M fraud scheme ‘tip of iceberg’
‘Worst of the worst’: The 10 most violent illegal immigrants nabbed in 2025
In midday trading, London’s FTSE 100 declined 0.5% to 7,331 and Frankfurt’s DAX lost 0.7% to 13,186. France’s CAC 40 shed 0.4% to 5,894. On Wall Street, futures for the benchmark Standard & Poor’s 500 index and the Dow Jones Industrial Average were each down 0.4%.
In Asia, the Shanghai Composite Index lost 0.3% to 2,905.24 and Tokyo’s Nikkei 225 sank 0.9% to 23,319.87. Hong Kong’s Hang Seng tumbled 1.8% to 26,571.46.
South Korea’s Kospi retreated 0.9% to 2,122.45 and Australia’s S&P-ASX 200 sank 0.8% at 6,698.40. India’s Sensex lost 0.3% to 40,215.20.
Hong Kong shares, already under pressure from the U.S.-China tariff war and slowing global demand, have been jolted by growing violence in anti-government protests.
The protests began in June over a proposed extradition law and expanded to include demands for greater democracy and other grievances. Hong Kong tumbled into its first recession in a decade in the latest quarter.
Momentum for the global stock market has been mostly upward for more than five weeks as worries about the U.S.-China trade war have eased.
This week, the U.S. Labor Department is due to give updates on consumer and wholesale inflation. Economists expect a government report to show retail sales returned to growth in October.
Trump stress-tests Thune’s Senate majority with record-breaking year
Health insurers drift leftward in campaign donations even as they seek to sway GOP
GOP Rep to Force Vote on Expelling Ilhan Omar from Congress
DC pipe bomb suspect says someone needed to ‘speak up’ about stolen election claims
Marjorie Taylor Greene criticizes Trump’s meetings with Zelenskyy, Netanyahu: ‘Can we just do America’
Tim Walz pushes back on Minnesota fraud allegations following viral daycare video
Ilhan Omar’s Somaliland stance slammed as Minnesota fraud scandal deepens
Trump, Zelenskyy say Ukraine peace deal close but ‘thorny issues’ remain after Florida talks
ICE delivers ‘greatest gift of all’ with Christmas arrests of convicted criminals across multiple states
Major cities see violent crime surge as national rates plummet significantly in 2025: survey
Deadly helicopter collision in New Jersey kills one, critically injures another
Is This Legal?: Leftist Group Recruits Military Officials to Turn Against Trump’s Drug Cartel Strikes
Charlie Kirk’s killing, Idaho murders plea and Karen Read verdict: Inside 2025’s biggest crime moments
FBI surges resources to Minnesota as Patel calls $250M fraud scheme ‘tip of iceberg’
‘Worst of the worst’: The 10 most violent illegal immigrants nabbed in 2025
Federal Reserve Chairman Jerome Powell is due to give testimony to Congress on Wednesday about the U.S. economy. Most investors expect the Fed to keep interest rates on hold for now after cutting them three times since the summer.
ENERGY: Benchmark U.S. crude lost 37 cents to $56.43 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 6 cents on Tuesday. Brent crude, used to price international oils, shed 60 cents to $61.46 per barrel in London. It retreated 12 cents the previous session.
CURRENCY: The dollar fell to 108.84 Japanese yen from 109.01 yen. The euro dipped to $1.1006 from $1.1010.
Story cited here.
