No plans to declare national emergency: Trump amid US-China trade war

Share

Wall Street's main indexes rose 1% on Monday as U.S. President Donald Trump eased his stance on trade with China, calming investor nerves after an intense feud between the world's top two economies last week sent stocks tumbling. Germany's DAX is at 11579.98, down 31.53 or -0.27% and France's CAC is trading 5320.71, down 6.16 or -0.12%. Markets in Britain were closed for a national holiday. Pacific time. The Dow gained 215 points, or 0.8%, to 25,843. Futures underlying the S&P 500, the Nasdaq and the Dow are each up at least 0.8%.

"I have second thoughts about everything", Trump said.

If US firms were forced to pull out of China that would mean a "deeper entrenchment of protectionist policies" and leave globalization "hanging by a thread", said OCBC's Lee.

US companies are especially welcome in China, and will be treated well, Liu said.

Concerns about the global economy slipping into recession and uncertainty over the pace of United States interest rate cuts have created some anxiety about how long the current U.S. expansion will last.

Still, market participants noted the rebound was less dramatic than the drop in markets last week, and they expected recent volatility to continue. "Right now, we are still sitting on that uncertainty".

He said later that talks also had taken place before Sunday. The comments were similar to ones Trump has made for more than a year, and his public optimism has been repeatedly dashed.

Japan's benchmark Nikkei 225 started plummeting as soon as trading began and stood at 20,234.87 in the morning session, down 2.3%. South Korea's Kospi lost 1.7% to 1,916.14.

The S&P/TSX composite index was up 104.32 points at 16,141.90. Shares were also down in Singapore, Taiwan, Indonesia and Thailand.

The increasingly bitter trade war between the world's two largest economies worsened on Friday with both sides levelling more tariffs on each other's exports.

On Friday, Trump had asked American companies to "immediately start looking for an alternative to China", including shifting manufacturing of their products to the USA after Beijing imposed additional tariffs on United States dollars 75 billion worth of U.S. goods.

Fox News hires Sarah Huckabee Sanders as contributor
Bill Shine, the former co-president of Fox News, also served as White House communications director from July 2018 to May 2019. The daughter of former Republican Arkansas Governor Mike Huckabee, Sanders has previously worked in leadership roles for U.S.

The Global Times, a widely-read tabloid published by the ruling Communist Party's official People's Daily, said leaving the Chinese market would be "suicide" for U.S. companies, especially for auto firms.

The yuan breached the key 7.0 threshold against the dollar earlier in August, just days after the U.S. announced plans to impose fresh tariffs on Chinese imports from September 1. However, China's Commerce Ministry typically releases statements on trade calls.

China's central bank has "resolutely opposed" the label.

The U.S. Trade Representative said tariffs already imposed on another $250 billion in Chinese imports would rise from 25% to 30% on October 1 following a public comment period.

"No matter which way you cut the cake, it is almost impossible to construct a bullish, or even neutral scenario for equity markets today", said Jeffrey Halley, senior market analyst at Oanda.

"The sentiment today is conciliatory, the president is trying to walk back", said Art Hogan, chief market strategist at National Securities in NY. The stocks of all three companies fell as traders tried to assess the possible implications.

The two sides have "been working on it for five months", he told reporters.

A quarter-point rate cut in September is considered all but certain.

Some analysts think the Fed will lower interest rates again this year.

USA futures are set to rally, easing Friday's rout sparked by trade war fears. Brent crude oil, the worldwide standard, rose 8 cents to $59.42 a barrel.

The dollar fell 0.2 percent to 0.9729 Swiss franc.

Share