Search

Global stocks sink after Beijing says it won't back down in trade war with US - CNN

China on Sunday said it will "not back down" in a trade fight with the United States, two days after signaling it could blacklist foreign companies from its huge market.
"The series of actions over the weekend means that China's 'long march' has begun," Iris Pang, an economist with ING said in a research note Monday.
"It means that the trade war has not only become a technology war but also a broad-based business war. There will be more retaliation actions from China, especially for the technology sector," she added.
Tokyo's Nikkei recovered slightly from a rough opening to close down 0.9% on Monday. The Shanghai Composite declined 0.3%, while Hong Kong's Hang Seng shed 0.1%.
In Europe, benchmark indexes in London and Paris were down 1% in early trading. Frankfurt's DAX declined 0.6%.
Dow futures tumble as trade war escalates
The Chinese government released a document on Sunday that blamed the United States for the breakdown in trade talks.
Wang Shouwen, a vice minister of commerce and deputy trade negotiator, said the United States can't force a trade deal on China and that the country "will not back down."
Beijing also said on Sunday that it is investigating FedEx after embattled Chinese tech firm Huawei said the delivery company diverted to the United States two packages intended for the company's offices in China.
The move on FedEx (FDX) comes after China announced Friday that is building an "unreliable entity list," effectively preparing to blacklist foreign companies as trade tensions with the United States continue to escalate.
China is investigating FedEx after it diverted packages to the United States
South Korea's KOSPI (KOSPI) bucked the trend on Monday, rising more than 1% as foreign investors snapped up shares in tech company Samsung Electronics (SSNLF) and chip maker SK Hynix.
Samsung and SK Hynix could benefit from increased sales to Chinese firms barred from doing business with US companies, according to a recent research note from Rex Wu, an analyst with brokerage Jefferies.
India is a massive business opportunity for America
President Donald Trump announced Friday that he will remove India from a special trade program on Wednesday. Meanwhile, investors are still trying to determine how new tariffs on Mexico might affect American businesses and the economy.
"Recent events have shown that markets cannot really ever dismiss (trade) uncertainties and that investors may need to accept that the United States is comfortable fighting a trade war on many fronts," said Hannah Anderson, a market strategist with JP Morgan.
Dow futures were down 160 points, or 0.6%, signaling a rough start to June for Wall Street. S&P 500 futures dropped 0.6% and Nasdaq futures fell about 0.8%.

Let's block ads! (Why?)


https://www.cnn.com/2019/06/03/investing/world-stock-markets/index.html

2019-06-03 11:05:36Z
CAIiEAjMX9x_DSCZsmIxuUGCWsIqGQgEKhAIACoHCAowocv1CjCSptoCMPrTpgU

Bagikan Berita Ini

0 Response to "Global stocks sink after Beijing says it won't back down in trade war with US - CNN"

Post a Comment

Powered by Blogger.