The New Round of the US-China Trade War Offenses Global Markets

HONG KONG – President Trump's trade war with China rocked world markets on Wednesday

China plummeted in Asia and Europe, stocks ending down nearly 2% after administration Trump. new tariffs on Chinese products. Equities in Japan and South Korea also declined, but to a lesser extent.

In Europe, the markets sold off massively in the late morning, the main markets having fallen by more than 1%. China-exposed companies were among the worst affected

on Wall Street, which rose on Tuesday, futures are trending down, giving a glimpse of how markets in the US could open on Wednesday morning. was also hit by the sale. China maintains good control over the value of its currency, but the small amount traded outside its borders – the so-called offshore renminbi – is weakened against the dollar.

The intensification of the trade war adds to China's challenges as its efforts to control its debt problems could slow down economic growth. Investors have become scabrous as a result. China has now entered the bear market – when prices fall by more than 20% since a peak – and its market remains at levels never seen since a rout three years ago triggered a domino effect in world trade. Tuesday night, to impose duties on an additional $ 200 billion of Chinese products, including chemicals, handbags, oil and fish. This measure comes a few days after the United States began taxing $ 34 billion worth of Chinese products such as robotics, ball bearings and even aircraft parts.

The Chinese government on Wednesday promised unspecified countermeasures. He matched previous dollar-for-dollar rates, which leads some investors to worry that trading could be even more expensive.

David French, an executive at the National Retail Federation, called the latest series of tariffs by the Trump administration "

" The threat to the US economy is less a question of "if "Than" when "and" wrong ", said Mr. French in an email. declaration.

The main stock index of China lost 1.8% on Wednesday. In the southern city of Shenzhen, where many new technologies and small businesses are being marketed, the market has fallen by 2%. In Hong Kong, the index of the largest Chinese listed companies fell by 1.5%

The reaction was more reserved in other Asian markets. In Tokyo, the main index fell 1.2%. Inventories in Seoul fell by less than 1%. A general index of the largest European companies was down 1.1% in the morning trade

In the US, S & P 500 futures were down 0.7%, while contracts Dow Jones futures were down 0.8%. ] [ad_2]
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