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London – Global equities stalled on Wednesday as Washington's week-end imposed tariffs on Chinese imports, while the yuan stabilized after China's central bank acted to calm investors. The Country World Index, which tracks stocks in 47 countries, was down less than 0.1% on the day, returning slightly from a drop of 0.2%.
Washington announced that it would apply duties on 34 billion dollars of Chinese imports in July. 6, and Beijing promised to fight back in kind the same day. Concerns over the outbreak of a global trade war have, among other factors, prevented a sustained recovery in global stock markets since February's mbadive selloff.
The United States has 284 additional product lines valued at $ 16 billion. with tariffs, including semiconductors and a wide range of electronic products. US President Donald Trump has also threatened tariffs for $ 400 billion worth of Chinese goods if Beijing retaliated to US tariffs due to come into effect on Friday.
Washington has launched a national security investigation into imports of cars and trucks, with Trump threatening Europe with a 20% tariff on vehicle imports, while several countries have already retaliated against US duties on steels and aluminum products.
American measures. "There are a lot of concerns, I think, about the effect that a long-term trade war could have but in fact, if you look at the data we see, the economic data is only not so bad, "said Michael Hewson, chief market badyst at CMC Markets in London
He noted that most stock markets were well above the lows reached earlier this year. "It could have a drag and that would have a drag, but is it going to push the global economy into recession?"
After plunging to the European opening, the pan-European STOXX 600 index entered positive territory in the afternoon, up nearly 0.2%. German exporters' heavy DAX fell by 0.1% and FTSE 100 by 0.2%
A Chinese court temporarily banned Micron Technology from selling chips in China, the world's largest memory chip market, and semi- Asian drivers stocks on Wednesday. The technology sector in Europe was down 0.5% as chip manufacturers STMicro and Infineon fell by 2%.
"The most important risks for the technology sector are the regulation and disruption of semiconductors." Peter Garnry, head of equity strategy at Saxo Bank, said: "At this point, the probabilities for both scenarios having major impacts on the technology sector in the short term are low. "
The MSCI Asia-Pacific's broadest index out of Japan decreased by 0.25%, one day after month Japan's Nikkei erased its losses before stabilizing in the late afternoon, while mainland stocks fell, with the CSI300 index down 0.7%. , the yuan rebounded after 11 months of decline after Chinese central bank moves Tuesday to calm turbulent financial markets.Chinese currency reached 6.6315 for a dollar in land trading, at Tuesday's low of 6 , 19654.
The main currencies were treading water. water while traders worried about the fallout from intensifying trade frictions between Washington and the rest of the world. The euro was down 0.2% to $ 1.1690 while the dollar was good for ¥ 110.51, down 0.1%.
Brent crude oil edged up after a second consecutive decline in US crude inventories resulting from a failure at Syncrude Canada's oil sands facility, which generally supplies the United States. Brent International futures rose 0.4% to $ 78.04 per barrel
US Crude Oil futures dropped 0.4% to $ 73.86 per barrel after having pbaded the $ 75 for the first time in more than three years on Tuesday. Considered a barometer of the global economic strength given its widespread use in the energy and construction sector, it reached its lowest level in nine months, or $ 6,423 per tonne on Wednesday
Reuters
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