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Trade war: Markets hit seven-week low as Beijing vows not to ‘surrender’ – business live

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Rolling coverage of the latest economic and financial news, as fears of a deepening trade war hit shares in AsiaLatest: China vows not to surrender; US expects retaliation soon Yuan hits lowest level since January; soybeans at record lowAmerica now drawing up tariffs on all Chinese goods
European markets hit seven-week lowIntroduction: Beijing expected to retaliate to US tariffs 11.35am BST China’s CSI 300 index has ended the day down 1.6% at 3,668, a drop of 61 points.President Trump on Friday raised tariffs on $200bn worth of Chinese imports from 10% to 25% and is now examining slapping tariffs on all remaining goods imported from China – worth about $300bn. The rhetoric and posturing is not good for risk and events over the last few days diminish the likelihood we will see a meaningful deal done.When we look at the posturing with Iran, it looks like the geopolitical hawks in the White House are in control. And unlike the weak Theresa May, Donald Trump is prepared to do no deal rather than a bad deal. 11.13am BST Chinese state television is also hammering home the ‘never surrender’ message.Reuters reports:State television said…that the effect on the Chinese economy from the U.S. tariffs was “totally controllable”. “It’s no big deal. China is bound to turn crisis to opportunity and use this to test its abilities, to make the country even stronger.” Continue reading…

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Author : Graeme Wearden

Publish date : 2019-05-13 10:35:07

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