Stocks Under Pressure From Trade War Escalation Fears 11 Sep 2018


Stocks under pressure from trade war escalation fears 11 Sep 2018

European and US stock markets came under pressure Tuesday on fears of a new escalation in the burgeoning trade war between China and the United States, dealers said.

London, (UrduPoint / Pakistan Point News - 11th Sep, 2018 ) :European and US stock markets came under pressure Tuesday on fears of a new escalation in the burgeoning trade war between China and the United States, dealers said.

China is planning to ask the World Trade Organization for permission to impose sanctions on the US over anti-dumping practices taken against some Chinese products.

"The strained trading relations between the US and China have taken a new turn," CMC analyst David Madden said of the move which he said "could trigger a reaction from President Trump and investors are exiting equities as a result".

Key European markets London and Frankfurt both ended lower, while Paris managed to edge into positive territory.

Wall Street, which had opened lower, also posted small gains approaching midday in New York on bargain-hunting.

President Donald Trump had already ramped up the China-US tariffs row late last week by threatening to tax all imports from the Asian giant, sending equities further into the red on Monday.

The WTO case dates back to December 2013, when China filed a dispute against the United States, taking issue with the way Washington assesses whether exports have been "dumped" at unfairly low prices onto the US market.

According to WTO rules, the plaintiff in such cases can request permission to impose sanctions if the parties have not reached agreement on satisfactory compensation within 20 days of the WTO deadline.

Washington will nonetheless still have the right to oppose any sanction decision, opening the way for a lengthy arbitration process that could take months to settle.

Earlier Tuesday, Asian investors also trod uneasily as concerns over trade and emerging markets dragged on confidence.

Hong Kong fell 0.7 percent and is now more than 20 percent from its record touched in January, putting it in a bear market.

Shanghai hit lows not seen since January 2016.

However, Tokyo rose 1.3 percent as exporters were supported by a weaker yen.

Dealers are also awaiting developments in Argentina, which is holding talks with the International Monetary Fund on accessing bailout cash as it looks to avert an all-out crisis.

The country's troubles, along with worries in Turkey and South Africa, have led to concerns of contagion in other emerging markets or even the global economy.

- Key figures around 1540 GMT - London - FTSE 100: DOWN 0.2 percent at 7,273.54 points (close) Frankfurt - DAX 30: DOWN 0.1 percent at 11,970.27 (close) Paris - CAC 40: UP 0.3 percent at 5,283.79 (close) EURO STOXX 50: FLAT at 3,310.42 New York - Dow: UP 0.3 percent at 25,923.80 Tokyo - Nikkei 225: UP 1.3 percent at 22,664.69 (close) Hong Kong - Hang Seng: DOWN 0.7 percent at 26,422.55 (close) Shanghai - Composite: DOWN 0.2 percent at 2,664.80 (close) Euro/dollar: DOWN at $1.1581 from $1.1594 at 2100 GMT Pound/dollar: DOWN at $1.2994 from $1.3027 Dollar/yen: UP at 111.55 Yen from 111.13 yenOil - Brent Crude: UP $1.22 at $78.59 per barrelOil - West Texas Intermediate: UP $1.16 at $68.70

Your Thoughts and Comments