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.
WATCH: Wanted man escapes cops twice by running onto freeway, then walks into their Panda Express lunch
NYC Judge Frees Man Accused of Shooting Service Dog of Woman with Down Syndrome While Attempting to Kill Man
Big Bend border wall construction pause extended to September
DOJ Arrests Honduran Man Accused of Taking Advantage of California’s Weak Election Laws
Bryan Kohberger seeks judge’s removal in escalating bid to undo guilty plea
At March on Washington, an urgent plea for black voters to turn out in the midterm elections
LGBTQ group reveals which Dem nominee is sponsoring Halloween event featuring drag shows
3-Time Pro-Bowl Running Back Josh Jacobs Is Facing Criminal Charges
Right-Wing Provocateur Milo Yiannopoulos Detained by ICE in Louisiana: Report
Appeals court denies Peter Navarro bid to rehear contempt challenge: ‘Always headed to Supreme Court’
Woman accused of defacing WWII Memorial with spray paint indicted by federal grand jury
Woody Harrelson Formally Asks UK’s New Prime Minister to Probe COVID ‘Vaccine Injury’
Watch: Dems’ New ‘Anti-Zionism’ Is Really Anti-Semitism, And It Only Takes 30 Seconds for Biggest Game Streamer in the World to Explain It
Judge throws out Khalid Sheikh Mohammed’s 9/11 confession in already long wait for trial
Trump vows ‘powerful appeal’ after another federal court rejects hush money case
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.
WATCH: Wanted man escapes cops twice by running onto freeway, then walks into their Panda Express lunch
NYC Judge Frees Man Accused of Shooting Service Dog of Woman with Down Syndrome While Attempting to Kill Man
Big Bend border wall construction pause extended to September
DOJ Arrests Honduran Man Accused of Taking Advantage of California’s Weak Election Laws
Bryan Kohberger seeks judge’s removal in escalating bid to undo guilty plea
At March on Washington, an urgent plea for black voters to turn out in the midterm elections
LGBTQ group reveals which Dem nominee is sponsoring Halloween event featuring drag shows
3-Time Pro-Bowl Running Back Josh Jacobs Is Facing Criminal Charges
Right-Wing Provocateur Milo Yiannopoulos Detained by ICE in Louisiana: Report
Appeals court denies Peter Navarro bid to rehear contempt challenge: ‘Always headed to Supreme Court’
Woman accused of defacing WWII Memorial with spray paint indicted by federal grand jury
Woody Harrelson Formally Asks UK’s New Prime Minister to Probe COVID ‘Vaccine Injury’
Watch: Dems’ New ‘Anti-Zionism’ Is Really Anti-Semitism, And It Only Takes 30 Seconds for Biggest Game Streamer in the World to Explain It
Judge throws out Khalid Sheikh Mohammed’s 9/11 confession in already long wait for trial
Trump vows ‘powerful appeal’ after another federal court rejects hush money case
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.
