Stocks, commodities tumble after Trump vows China tariff hike

Stocks, commodities tumble after Trump vows China tariff hike

Global financial markets tumbled on Monday after US President Donald Trump unexpectedly jacked up pressure on China to reach a trade deal, saying he would hike US tariffs on Chinese goods this week, Trend reports citing Reuters.

Equity markets, which had been largely expecting a trade accord, fell sharply across export-reliant Asia as further talks were thrown into doubt.

Chinese shares plunged more than 4 percent at one point, while US stock market futures fell close to 2 percent.[.N] Oil prices plunged and the Chinese yuan tumbled.

Trump sharply escalated tensions between the world’s two largest economies with tweeted comments on Sunday that trade talks with China were proceeding “too slowly”, and that he would raise tariffs on $200 billion of Chinese goods to 25 percent on Friday from 10 percent.

He also said he would target a further $325 billion of Chinese goods with 25 percent tariffs “shortly”.

The tweets upended the previously calm market mood that had benefited from signs of improving growth in China and the United States, and from comments from Trump and other senior US officials that trade talks were going well.

The Wall Street Journal reported on Monday that China was considering cancelling trade talks scheduled for this week following Trump’s threats.

“I think this has got the potential to be a real game-changer,” said Nick Twidale, Sydney-based analyst at Rakuten Securities Australia.

“There is still a question of whether this is one of the famous Trump negotiation tactic, or are we really going to see some drastic increase in tariffs. If it’s the latter we’ll see massive downside pressure across all markets,” he said.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.6 percent shortly after China’s markets reopened from a three-day national holiday.

Chinese blue-chips shed 4.2 percent in early trade, having closed higher before the holiday amid expectations that pressures on China’s economy were easing.

The drop in Chinese shares came despite a move on Monday by China’s central bank to cut reserve requirements for smaller banks to help boost lending to small and private firms.

Australian shares were off 1.2 percent.

Japanese financial markets remain closed until Tuesday for a national holiday, but Nikkei 225 futures dropped 2.4 percent to 21,955.

E-Mini futures for the S&P 500 slid 1.9 percent, erasing memories of gains on Friday after the US payroll data had helped to lift Wall Street.

Treasury futures jumped 21 ticks. Data from CME Group showed the market sees a nearly 58 percent chance of a Federal Reserve rate cut by the end of the year.

Chinese 10-year treasury futures also jumped, with the most-traded contract, for June delivery rising 0.5 percent to 97.010.

“The intensified trade and geopolitical risks are likely to prompt the regional central banks for more stimulatory policies,” analysts at ING said in a note. “We expect the majority of Asian central banks meeting this week to cut their policy rates.”

As investors flocked to the safe-haven yen, the dollar dropped 0.6 percent against the Japanese currency to 110.43.

But China’s yuan plunged, with the offshore unit weakening to 6.8215 per dollar, its weakest level since January 10, before paring some of its losses.[CNY/]

The onshore yuan weakened to 6.7980 per dollar before bouncing back to 6.7923.

The single currency was down 0.1 percent on the day at $1.1189. The dollar index, which tracks the greenback against a basket of six major rivals, was flat at 97.523.

In commodity markets, US crude plunged 2.9 percent at $60.17 a barrel and Brent crude fell 2.6 percent to $69.01 per barrel.

Spot gold jumped 0.3 percent to trade at $1,282.91 per ounce.

Subscribe to Trend in Google News! Subscribe
Iran aims to build new oil, gas refineries amid growing consumption
Iran aims to build new oil, gas refineries amid growing consumption
Azerbaijani PM talks on measures to curb price increase
Azerbaijani PM talks on measures to curb price increase
Iran seeks to establish joint banking network with Syria
Iran seeks to establish joint banking network with Syria
Loading Bars
Latest
BioNTech CEO confident of quickly adapting vaccine for Omicron
Situation is still fragile in South Caucasus - OSCE Chairperson-in-Office
Azerbaijan to strengthen social protection of population in 2022 – PM
Azerbaijan may exempt import of books and paper from VAT
Iran reveals its non-oil trade in 7 months
Iran aims to build new oil, gas refineries amid growing consumption
Uzbek Central Bank shares data on leading banks in terms of loans
Azerbaijani PM talks on measures to curb price increase
Iran seeks to establish joint banking network with Syria
Azerbaijan to expand agriculture dev’t in Karabakh in 2020 – minister
Demining of water basins in Azerbaijan's liberated Fuzuli, Aghdam underway - ministry
Azerbaijan removes electronic bracelets from 134 convicts within amnesty act
India seeks strong ties with EU, cooperation in transition to clean energy
Dubai's DP World pulls out of Haifa port privatisation bid
Azerbaijani Artillery Units hold live-fire exercises (PHOTO/VIDEO)
Azerbaijan to change state duties on issuing registration plates of road vehicles
Georgian business sector sees average monthly salary increase
Cementing ties with France, UAE places $19 bln order for warplanes, helicopters
Azerbaijan preparing development strategy for Karabakh - Karabakh Revival Fund (PHOTO)
Man of Armenian origin who attacked Azerbaijani soldier neutralized – MoD
Azerbaijan releases 14 prisoners from correctional institution № 16 as part of amnesty act (PHOTO)
Azerbaijan releases 122 prisoners from correctional institution within amnesty act (PHOTO)
Australia calls on Azerbaijan, Armenia to delimit and demarcate state borders
Azerbaijan sees growth of trading via Baku Stock Exchange
Azerbaijan to release 65 female prisoners within act of amnesty
Georgia’s domestic supply of natural gas slightly decreases
Azerbaijan clears almost half of "Araz Valley Economic Zone" Industrial Park of mines - minister
Azerbaijan releases seven prisoners within act of amnesty (PHOTO)
Azernews newspaper selected as media partner of ECO from Azerbaijan (PHOTO)
bp is first company to use flexible approach in management of energy resources during pandemic
Turkey’s fuel exports to Georgia plummet
EU firms in infrastructure sector spent higher share of their investment on energy efficiency
Azerbaijan to strengthen control over allocation of subsidies
Share of EU firms investing in improving energy efficiency falls
Partnered with Azerbaijani banks, VISA actively developing technologies for issuing digital cards
Azerbaijan expands list of goods not covered by VAT refund
Georgia’s electricity exports triple
Azerbaijan’s justice ministry talks number of people released under amnesty act (PHOTO)
Further strengthening of Azerbaijan's army is one of important tasks – PM
Azerbaijan discloses expenses on COVID-19 vaccination
Opening of Zangazur corridor is one of most important issues – PM
Azerbaijani Parliament adopts amendments to Tax Code
Over half of EU firms affected by physical climate change risks
Russia records over 32,900 COVID-19 cases in last 24 hours
Head of Azerbaijan’s State Border Service visits servicemen injured in recent helicopter crash
Average salary in Israel rises 2.9%
EDB may help Uzbekistan to solve problems related to water, energy shortages
Turkey shares cargo traffic data for local Aliaga port in 10M2021
Azerbaijani parliament approves subsistence minimum size for 2022
Azerbaijan’s parliament adopts amount of need criterion for 2022
Azerbaijani Parliament adopts budget of State Social Protection Fund for 2022
Azerbaijan’s justice ministry talks number of people released under amnesty act from correctional institution № 1 (PHOTO)
Kazakhstan reports increase in bilateral trade with Germany
New U.S. COVID-19 international travel testing rules take effect Monday
Azerbaijan’s justice ministry reveals number of persons released under amnesty act (PHOTO)
Value of Azerbaijan's export to Italy grows in 10M2021
Azerbaijan’s parliament adopts state budget for 2022
Georgia shares data on consumer price index, inflation rate
Turkmen Health Ministry opens tender for purchase of medical equipment
Uzbekistan to consider five main directions of development of co-op with EAEU
Azerbaijan’s parliament honors memory of servicemen who died in helicopter crash
Nobel Oil Announces Major Rebrand
Warrant officer of Azerbaijan Army dies in accident
Kazakhstan's monthly food price indicators rising
Georgia releases COVID-19 data for December 3
Snam finalizes acquisition of stake in East Mediterranean Gas Company
Azerbaijani oil prices decrease
Azerbaijan allows 'UK Anglo Asian Mining' to develop Vezhnali deposit in Zangilan district
Kazakh national atomic company's subsidiary opens tender to buy pipes
SOFAZ significantly increases volume of currency sold at auctions
World community should support efforts to normalize Armenia-Azerbaijan relations – FM
Turkey discloses volume of cargo shipments via local ports from Algeria for 10M2021
Flight recorders to help reveal cause of helicopter crash in Azerbaijan – security expert
Natural gas prices may face headwinds from Omicron variant
OPEC+ decision adds substantial downside risk to oil prices
FLNG solutions could become more common in regions with large reserves of untapped natural gas
Azerbaijani, Turkish online portals sign memorandum of understanding
Belarus ready to participate in restoration of Azerbaijan’s liberated territories – FM
Georgia becomes member of UN World Tourism Organization Executive Board
Kazakh Ulba Metallurgical Plant opens tender for cargo insurance
Uzbekistan shares domestic COVID-19 data for December 2
Central Bank of Azerbaijan reveals amount of foreign currency sold via auction
Azerbaijani currency rates for December 3
Oil rises on OPEC+ plan to meet if Omicron hits fuel demand
Azerbaijan increases electricity imports from Iran, Russia, Georgia
Action plan underway within 'Peace4Culture' initiative - Azerbaijani minister
FMs of Azerbaijan, Greece talk current state of bilateral relations (PHOTO)
Icelandic companies ready to co-op with Azerbaijan in renewable energy field
SOCAR employee goes missing in Caspian Sea
France's Macron nears UAE Rafale fighter jet deal
Poland plans to cover all gas demand by supplies other than from Eastern direction in 2022 – ministry (Exclusive)
SpaceX delivers 50 satellites into orbit
724 new COVID-19 cases reported in Kazakhstan
U.S. to restart Trump-era border program forcing asylum seekers to wait in Mexico
Coronavirus cases in South Africa nearly triple in three days
Apple reveals 2021 App Store Award winners
Ronaldo passes 800-goal mark with double in win over Arsenal
Germany to introduce stricter COVID-19 restrictions for unvaccinated people
France, in letter to Boris Johnson, rejects idea of joint border patrol in Channel
Turkey's foreign trade turnover grows in October 2021
All news