GLOBAL NEWS-
China’s State Council said on Sunday that the country would continue to suspend additional tariffs on U.S. vehicles and auto parts after April 1, in a goodwill gesture following a U.S. decision to delay tariff hikes on Chinese imports.In December, China said it would suspend additional 25 percent tariffs on U.S.-made vehicles and auto parts for three months, following a truce in a trade war between the world’s two largest economies.The State Council, or cabinet, said Sunday’s move was aimed at “continuing to create a good atmosphere for the ongoing trade negotiations between both sides”.“It is a positive reaction to the U.S. decision to delay tariff hikes and a concrete action adopted (by the Chinese side) to promote bilateral trade negotiations,” the State Council said.“We hope the U.S. can work together with China, accelerate negotiations and make concrete efforts towards the goal of terminating trade tensions.”
Factory activity in China showed a slight, surprising recovery last month, in a sign that stimulus injected into Asia’s growth engine may be yielding results, but worries of a global slowdown persisted due to weakness elsewhere in the region. Even in China, growth in new domestic and export orders was marginal. Factory activity in Japan, South Korea, Malaysia, and Taiwan shrank further, adding to expectations of a dovish turn from central bankers in the region.
The United Arab Emirates’ economy grew by around 1.7 percent in 2018, slower than projected despite a boost from higher oil prices, official preliminary data showed. The UAE growth figures follow Dubai’s disclosure last week that its economy grew by 1.94 percent in 2018, its slowest pace since a contraction in 2009 when the economy was hobbled by a debt crisis.Oil producer UAE had projected in December growth between 2.5 and 3 percent for 2018, with Gulf economies benefiting from higher oil prices after OPEC members and other producers cut output to tackle a supply glut.
Britain’s exit from the European Union was in disarray after the implosion of Prime Minister Theresa May’s Brexit strategy left her under pressure from rival factions to leave without a deal, go for an election or forge a much softer divorce.After one of the most tumultuous weeks in British politics since the 2016 referendum, it was still uncertain how, when or even if the United Kingdom will ever leave the bloc it first joined 46 years ago.A third defeat of May’s divorce deal, after her pledge to quit if it was passed, left one of the weakest leaders in a generation grappling with a perilous crisis over Brexit, the United Kingdom’s most significant move since World War Two.
Asian stocks rallied on Monday as positive Chinese factory gauges and signs of progress in Sino-U.S. trade talks supported sentiment, although another defeat for British Prime Minister Theresa May’s proposed Brexit deal added to sterling’s woes.MSCI’s broadest index of Asia-Pacific shares outside Japan added 1 percent and the Shanghai Composite Index rallied 1.7 percent.Australian stocks climbed 0.8 percent, South Korea’s KOSPI gained 1 percent and Japan’s Nikkei advanced more than 2 percent.
The erosion of Turkey’s foreign currency reserves is a credit negative and central bank use of reserves to prop up the lira currency poses renewed questions on its transparency and independence, Moody’s Rating Agency said on Monday.“Intervention to support the lira is contrary to the central bank’s longstanding policy to allow the exchange rate to float freely and poses renewed questions about the transparency and independence,” Moody’s said in a note.
India’s currency and bond markets are closed on Monday for annual account closing of banks. Trading will resume on Tuesday.India has once again delayed the implementation of higher tariffs on some goods imported from the United States to May 2, according to a government order.The new tariff structure was to come into force from April 1.Angered by Washington’s refusal to exempt it from new steel and aluminum tariffs, New Delhi decided in June last year to raise the import tax from Aug. 4 on some U.S. products including almonds, walnuts and apples.But since then, New Delhi has repeatedly delayed the implementation of the new tariff.
Gold prices inched up on Monday as the dollar backed off three-week highs, but gains in the metal were limited as equities rose on signs of progress in the Sino-U.S. trade talks and upbeat Chinese economic data.Spot gold was up 0.1 percent at $1,293.15 per ounce by 0337 GMT, after touching its lowest since March 8 at $1,286.35 in the previous session.U.S. gold futures were down about 0.1 percent at $1,297.90 an ounce.
Oil prices rose on Monday, adding to gains in the first quarter when the major benchmarks posted their biggest increases in nearly a decade, as concerns about supplies outweigh fears of a slowing global economy.Brent crude for June delivery was up by 43 cents, or 0.6 percent, at $68.01 a barrel by 0214 GMT, having risen 27 percent in the first quarter.U.S. West Texas Intermediate (WTI) futures rose 32 cents, or 0.5 percent, to $60.46 barrel, after posting a rise of 32 percent in the January-March period.U.S. sanctions on Iran and Venezuela along with supply cuts by members of the Organization of the Petroleum Exporting Countries (OPEC) and other major producers have helped support prices this year, overshadowing concerns about global growth and the U.S.-China trade war.