Wall Street slides as US-China trade fears rise

Yuan Plunges U.S. Stock Futures Drop on Trade War Markets WrapMore
Yuan Plunges U.S. Stock Futures Drop on Trade War Markets WrapMore
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08 May, 2019

His support for Trump's approach to China stood in contrast to Democratic frontrunner Joe Biden, who said last week that the world's second largest economy is "not competition" to the United States and claims that Beijing is going to "eat our lunch" are totally overblown.

"If the Trump administration follows through with the tariffs threats on Friday, I think it means the talks fall apart". "The underlying issue is an increasing rivalry between the U.S. and China which goes far beyond the trade deficit".

Shanghai plunged more than five per cent, with the Chinese yuan also taking a battering after the president threw a spanner into the high-level negotiations, which many observers were expecting to wrap up imminently.European equities also dived, with key eurozone exchanges Frankfurt and Paris down by around 2pc.

"We have always had some reservations", Do told Yahoo Finance's "The First Trade".

Pressure tactic or genuine roadblock? For weeks, Trump administration officials had suggested that negotiators were making steady progress.

In Beijing, President Donald Trump's new threat to hike tariffs on Chinese goods has not gone over well.

"So at least one party to the negotiations seems to view this as an attempt at creating leverage", Doug Barry of the US-China Business Council told DW.

Traders are keeping a close eye on trade talks between the USA and China.

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The information collected in the DNA test will not be stored or shared, the ICE official said. Trump has frequently described as a "crisis".


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Two of the four people who were injured are now in critical condition, according to police. Two people were found dead at the scene, and two others have life-threatening injuries.


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Hardware stats are not posted separately by Google and the figures are instead reported under the "Other revenues" category. She did not elaborate on what the pressure were but many speculate it is the stiff competition between Samsung and Apple .


Needless to say, the damage to the Chinese economy would boomerang back to the US, slowing growth and presenting a series of headwinds for a variety of sectors. Festering trade worries could hurt Mr. Trump's re-election chances, while ending the dispute would boost the Chinese economy.

Monday's comments from Lighthizer and Mnuchin raised concerns among some investors that trade talks between China and the United States could take much longer to resolve than previously thought.

The Shanghai Composite Index closed up 0.7 per cent amid signs that talks between the world's two largest economies hadn't fallen apart, even as stocks in Europe dropped and USA equity-index futures were lower.

Analysts say they do not see Trump following through on his threat of imposing new tariffs on the $325 billion worth of Chinese imports not yet taxed. Tech and industrial companies, which import a range of components and other parts from China, would feel the biggest impact from raising tariffs on Chinese imports, according to UBS. It would be hard to overcome this setback and reach agreement on other sticking points, such as subsidies and cloud-computing access, in just two days of talks, the person said. That showed in share prices of United States companies that get big portions of their sales from China, which had done better than the rest of the market, according to analysts at Jefferies.

The United States is demanding sweeping changes to China's economic policies.

China's top economic official will travel to Washington this week ahead of a Friday deadline by which Washington said it would sharply raise tariffs on Chinese goods.

Sen. Bernie Sanders, another high-polling Democratic presidential contender, said Biden is "wrong" and China has taken 3 million jobs from US workers.

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Monday cast doubt on the talks, telling reporters China had backtracked on previous commitments. "Over the last week or so, we have seen an erosion in commitments by China".


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