Breaking News

Lack of US-China trade deal weighs on Asian markets

Markets in Asia were down on Monday as the lack of a US-China trade deal cast a cloud over nervous traders.

Investors watched the latest developments warily in the trade war between the world’s top two economies, after negotiations in Washington ended Friday without agreement and a tariff hike on Chinese imports went into effect.

Almost all Asian markets were lower as the week’s trading began, with Tokyo’s benchmark Nikkei 225 index closing down 0.7 percent.

Shanghai was down 1.2 percent, Singapore shed one percent, while Taiwan and Seoul both dropped 1.4 percent.

White House economic advisor Larry Kudlow said US President Donald Trump and China’s Xi Jinping could meet next month on the sidelines of the G20 summit to hash out their differences on trade — but no new talks are yet scheduled.

With another round ending without a deal, markets are underpricing how long the US-China trade talks may drag on, Eleanor Creagh, a Sydney-based Australia market strategist at Saxo Capital Markets, told Bloomberg Television.

The “underlying relationship is going to be fraught with much deeper tensions,” she said.

Trump had accused Beijing of reneging on its commitments and ordered new punitive duties — which took effect Friday — on $200 billion worth of Chinese imports, raising them to 25 percent from 10 percent.

He then ordered a tariff hike on almost all remaining imports from China, which are worth about $300 billion, according to US Trade Representative Robert Lighthizer.

– Retaliatory measures –

Beijing’s top trade negotiator, Vice Premier Liu He, had warned earlier that Beijing “must respond” to any US tariffs — while China’s state media blamed Washington for the lack of progress.

“US-China trade relations will continue centre stage this week with most other data and events relegated to a distant second place,” said OANDA senior market analyst Jeffrey Halley.

“China will no doubt announce retaliatory measures while the US may provide more concrete start dates for the newly-imposed tariffs. Markets can expect short-term whipsaw price action as the street hangs on every little comment emanating from Washington DC and Beijing.”

Amid nervousness in China markets, state funds reportedly intervened to prop up shares on Monday and again Friday, when the Shanghai Composite closed up more than 3 percent.

“Trade talks have come to a deadlock and it’s unlikely we’ll see the situation turn for the better in the near term,” said Raymond Chen, a portfolio manager with Keywise Capital Management Beijing Ltd.

“Now all eyes will turn to China’s policies and how it will stimulate domestic consumption to maintain its growth.”

The yuan dropped 0.6 percent in offshore trading Monday after having lost about 2.4 percent in May, making it one of the worst performing currencies in the world.

Japan yen — often a safe haven in time of crises — extended gains after capping its fourth weekly advance against the dollar on Friday.

Traders will also be watching this week for earnings reports from Chinese tech giants Tencent and Alibaba, and key data on China’s industrial production and retail sales slated for Wednesday — the same day figures are due for US retail sales and industrial production.

In Europe, stock markets rose at the start of trading on Monday, with London and Frankfurt both opening up 0.1 percent.

– Key figures around 0720 GMT –

London – FTSE 100: UP 0.1 percent at 7,212.68 points

Tokyo – Nikkei 225: DOWN 0.7 percent at 21,191.28 (close)

Shanghai – Composite: DOWN 1.2 percent at 2,903.71 (close)

Hong Kong – Hang Seng: closed for a public holiday

Euro/dollar: DOWN at $1.1232 from $1.1239 at 2100 GMT Friday

Pound/dollar: DOWN at $1.3001 from $1.3006

Dollar/yen: DOWN at 109.70 yen from 109.96 yen

Oil – West Texas Intermediate: UP 20 cents at $61.85 per barrel

Oil – Brent Crude: UP 55 cents at $71.17 per barrel

New York – Dow: UP 0.4 percent at 25,942.37 (close)

— Bloomberg News contributed to this story —


Source link

health news headlines provided courtesy of Medical News Today.

Advertisement

Advertisement Small

Follow Me

Collaboratively harness market-driven processes whereas resource-leveling internal or "organic" sources. Competently formulate.

View More Job Search Results

Calendar

July 2019
M T W T F S S
« Jun    
1234567
891011121314
15161718192021
22232425262728
293031  

Pages

Recent Comments

    RSS Meks Blog

    • How to easily create WordPress dropdown menu (without coding) July 17, 2019
      Interested to create WordPress dropdown menu all by yourself and don’t know how? Just follow our guide and learn in no time! The post How to easily create WordPress dropdown menu (without coding) appeared first on Meks.
      Ivana Cirkovic
    • 12 must join Facebook groups for photographers July 11, 2019
      Whether it’s for constructive feedback or new learnings, these Facebook groups for photographers are a great networking place to be in! The post 12 must join Facebook groups for photographers appeared first on Meks.
      Ivana Cirkovic
    • Easy guide on how to make your WordPress site private July 4, 2019
      Wondering how to make your WordPress site private knowing there is no built-in option to it? Read our guide and learn all about it! The post Easy guide on how to make your WordPress site private appeared first on Meks.
      Ivana Cirkovic
    • 10+ email list building ideas and tools (to easily grow your customer base) June 27, 2019
      What are some of the most efficient email list building ideas and tools to grow your audience in 2019 and beyond? Here’s our recommendation! The post 10+ email list building ideas and tools (to easily grow your customer base) appeared first on Meks.
      Ivana Cirkovic
    • The future of WordPress and Gutenberg Editor – Matt’s talk at WordCamp Europe 2019 June 22, 2019
      What seems to be the future of WordPress and Gutenberg Editor? These are the topics Matt covered in his summer state of WordPress at WCEU in Berlin and all the great things coming ahead. The post The future of WordPress and Gutenberg Editor – Matt’s talk at WordCamp Europe 2019 appeared first on Meks.
      Ivana Cirkovic
    • How to easily add Google Fonts to your WordPress website June 19, 2019
      Do you want to add Google fonts to your WordPress website? Here’s how you can freshen up your web place and make it faster, trendy and more appealing. The post How to easily add Google Fonts to your WordPress website appeared first on Meks.
      Ivana Cirkovic
    • Using Google Trends for market research to leverage your content creation ideas June 12, 2019
      Did you know you can use Google Trends for market research and target your customer needs, tailor content strategy, in a much better way? The post Using Google Trends for market research to leverage your content creation ideas appeared first on Meks.
      Ivana Cirkovic
    • How WordPress can help you to build and increase brand awareness June 6, 2019
      How can you build and improve brand awareness with WordPress and what steps are needed in that strategy? The post How WordPress can help you to build and increase brand awareness appeared first on Meks.
      Ivana Cirkovic
    • Starting a photography blog: The secrets successful photo bloggers won’t tell you May 30, 2019
      Is starting a photography blog the next step for your personal branding and getting out there with your work? Sure is! And here’s how you can do it! The post Starting a photography blog: The secrets successful photo bloggers won’t tell you appeared first on Meks.
      Ivana Cirkovic
    • 5+ best forum plugins for WordPress to build a loyal community in 2019 May 22, 2019
      Looking for the best forum plugin for WordPress to build a community and keep them engaged? Let us save you the time and choose among these 6 we recommend. The post 5+ best forum plugins for WordPress to build a loyal community in 2019 appeared first on Meks.
      Ivana Cirkovic

    Text

    Distinctively utilize long-term high-impact total linkage whereas high-payoff experiences. Appropriately communicate 24/365.

    Archives