Markets Take Trade War Escalation In Stride
Umer Jamshaid Published September 18, 2018 | 11:18 PM
Stock markets took the latest escalation in the trade war between the world's top two economies in their stride on Tuesday.
London, (UrduPoint / Pakistan Point News - 18th Sep, 2018 ) :Stock markets took the latest escalation in the trade war between the world's top two economies in their stride on Tuesday.
European stocks only briefly turned lower after China retaliated to the latest US sanctions, while Wall Street opened higher, as analysts viewed Beijing's reaction as being moderate and measured.
China announced Tuesday tariffs on US goods worth $60 billion in retaliation for President Donald Trump's decision the previous day to slap duties on $200 billion in Chinese products next week.
"If the United States insists on raising tariffs even more, China will respond accordingly," the finance ministry said in a statement.
Monday's volley of tariffs from the White House will see $200 billion worth of goods taxed at 10 percent from September 24, going up to 25 percent from January 1 if the two sides are unable to hammer out a deal.
Trump warned also that another $267 billion in tariffs has been lined up if Beijing retaliates.
But Beijing went ahead anyway and announced the new tariffs.
While European markets briefly dropped, they rebounded after Wall Street opened higher, as traders took a sanguine view of the developments.
"The more lenient approach from President Trump last night and a measured reaction from Beijing has left traders a little on the optimistic side," said market analyst David Madden at CMC Markets UK.
"It is almost as if a hurdle has been cleared and investors have one less thing to worry about in the near-term," he added.
London gave up its gains, but Paris closed 0.3 percent higher and Frankfurt rose by 0.5 percent.
The Dow was up 0.5 percent in late morning trade.
Fawad Razaqzada at forex.com called China's latest move "measured and not over-aggressive" as the tariff rates it applied were less than it had previously indicated.
"So it looks like China has blinked first, and this puts the US government in a great position to agree on a new trade deal," added Razaqzada.
Consumer tech giant Apple was spared in this round of tariffs, which excluded smartwatches and Bluetooth devices. Apple's shares were up 0.8 percent in late morning trading.
"There were investors who'd been thinking a 25 percent tariff in one go is a possibility," Shogo Maekawa, a global market strategist with JPMorgan Asset Management, said.
"It could be considered something good in this realm of bad things."
Related Topics
Recent Stories
Earthquake jolts Karachi
Sindh minister orders operation after attack on police in Ghotki
TikTok to fight US ban law in courts
Anger among Ukrainians in Poland as Kyiv halts passport renewals
Police book youngster for abusing student for one year
British-Pakistani firm unveils $35 million luxury apartments for overseas Pakist ..
Watford hire Cleverley as permanent boss
Police arrest 23 suspects, recover stolen money, phones
Colorful cultural festival concludes at NUML
Immunization awareness week kicks off in Balochistan
Teenage girl arrested after stabbing at Welsh school
Ministers visit Aziz Bhatti Shaheed Hospital following roof collapse incident
More Stories From Business
-
British-Pakistani firm unveils $35 million luxury apartments for overseas Pakistanis in Islamabad
8 minutes ago -
European stocks lose momentum after global rally
26 minutes ago -
New pulses varieties imperative to cater domestic food requirements: Dr Khalid Hasan
1 hour ago -
CEO KP-EZDMC meets CRBC officials
2 hours ago -
Pakistan among nine poor countries that produces 90 percent cigarettes for world
2 hours ago -
Chief Minister Gilgit Baltistan Haji Gulbar Khan calls on Minister for Privatisation
3 hours ago
-
Germany nudges up growth forecast, ailing economy at 'turning point'
3 hours ago -
Revised UAF budget recommended
3 hours ago -
IDEA, TEVTA organizes Job Fair for youth
3 hours ago -
Massive financial, administrative scam unearthed at SCCI
3 hours ago -
FCCI welcomes Iranian president's visit
3 hours ago -
Germany nudges up growth forecast, ailing economy at 'turning point'
4 hours ago