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.
The Will of 100: Trump’s SAVE America Act sidelined after Senate unanimously agreed to August exit
Watch: Emotional Kurt Busch Reveals His Final Words with His Brother Kyle
USPS publishes rule to block mail-in ballots from states that don’t provide voter lists
Karmelo Anthony’s Legal Team Smears Austin Metcalf in Desperate Attempt to Overturn Conviction
Tupac Shakur murder trial’s first week sees heated testimony from reluctant witnesses with old gangland ties
WATCH: Father of three outraged over advice his family received amid trans teacher fight
Charles Manson’s granddaughter reveals moment she discovered dark family secret: ‘It was devastating’
Dem Senate hopeful racked up hundreds of missed votes during stops at multiple taxpayer serving jobs
New York Times Ordered to Pay College Basketball Player $9.25 Million for Defamation
College Costs Surge 10% Higher Than Last Year, New Report Shows
A Bayh-gone era for Indiana Democrats?
Scharf edge for the Trump administration
Skip the summer’s woke dinosaur movie, ‘The End of Oak Street’
Senator launches assault on illegal immigration gaps as GOP races midterm clock to lock in key wins
EXCLUSIVE: 5-time illegal entrant admits ‘mistake’ that finally got him busted by ICE
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.
The Will of 100: Trump’s SAVE America Act sidelined after Senate unanimously agreed to August exit
Watch: Emotional Kurt Busch Reveals His Final Words with His Brother Kyle
USPS publishes rule to block mail-in ballots from states that don’t provide voter lists
Karmelo Anthony’s Legal Team Smears Austin Metcalf in Desperate Attempt to Overturn Conviction
Tupac Shakur murder trial’s first week sees heated testimony from reluctant witnesses with old gangland ties
WATCH: Father of three outraged over advice his family received amid trans teacher fight
Charles Manson’s granddaughter reveals moment she discovered dark family secret: ‘It was devastating’
Dem Senate hopeful racked up hundreds of missed votes during stops at multiple taxpayer serving jobs
New York Times Ordered to Pay College Basketball Player $9.25 Million for Defamation
College Costs Surge 10% Higher Than Last Year, New Report Shows
A Bayh-gone era for Indiana Democrats?
Scharf edge for the Trump administration
Skip the summer’s woke dinosaur movie, ‘The End of Oak Street’
Senator launches assault on illegal immigration gaps as GOP races midterm clock to lock in key wins
EXCLUSIVE: 5-time illegal entrant admits ‘mistake’ that finally got him busted by ICE
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.
