Trump tweeted that he would raise tariffs on $200 billion worth of Chinese goods to 25 percent from 10 percent by the end of the week, and would “soon” target the remaining Chinese imports with tariffs, sending stocks and oil prices lower on Monday. U.S. Trade Representative Robert Lighthizer, who has been an advocate for tough structural changes in China, said Beijing had reneged on commitments it had made previously that would have changed the agreement substantially.Trump’s announcement on Sunday abruptly ended a five-month truce in a trade war that has cost the two countries billions of dollars, slowed global growth and disrupted manufacturing supply chains and U.S. farm exports.
Chinese Vice Premier Liu He is expected to be in Washington on Thursday and Friday of this week for further talks.A spokesman at the Chinese Embassy in Washington did not immediately respond to queries about the U.S. assertions.“We are also in the process of understanding the relevant situation. What I can tell you is that China’s team is preparing to go to the United States for the discussions,” Chinese Foreign Ministry spokesman Geng Shuang said earlier in Beijing. “We still hope the United States can work hard with China to meet each other halfway, and strive to reach a mutually beneficial, win-win agreement on the basis of mutual respect.”China has repeatedly said it will make changes to open its economy according to its own timeline, not in response to trade disputes.
China’s central bank said on Monday it will cut reserve requirement ratios (RRRs) to release about 280 billion yuan ($41 billion) for some small and medium-sized banks, in a targeted move to help companies struggling amid an economic slowdown.The cut in the amount of cash that banks must hold as reserves would be the smallest since January 2018, when the People’s Bank of China (PBOC) started its latest round of policy easing to support the world’s second-largest economy.The cut, while widely expected at some point, was announced right before China’s stock market opened, and just hours after U.S. President Donald Trump sharply escalated trade tensions between the world’s two largest economies.
Japanese manufacturing activity expanded in April for the first time in three months as companies hired more workers and grew more optimistic about the business outlook, a preliminary survey showed on Tuesday.But the survey also showed new export orders fell in April at a faster rate than the previous month, in a reminder of the damage to Asia’s exporters from the U.S.-China trade war and weak global demand for semiconductors.Nikkei Japan Flash Manufacturing Purchasing Managers Index (PMI) rose to a seasonally adjusted 50.2 in April from a final 49.2 in the previous month.For the first time since January, the index swung above the 50 threshold that separates contraction from expansion, though the improvement was modest.
The euro zone economy limped into the second quarter with lackluster growth as weakness in the manufacturing sector is increasingly affecting the bloc’s dominant services industry.IHS Markit’s Euro Zone Composite Final Purchasing Managers’ Index (PMI), considered a good measure of overall economic health, dipped to 51.5 in April from March’s 51.6.That was higher than an earlier flash reading of 51.3 but close to the 50 mark separating growth from contraction.The survey is indicative of the economy growing at a quarterly rate of approximately 0.2 percent, but manufacturing remained mired in its steepest downturn since 2013 and service sector growth slipped lower.
Pakistan on Monday appointed chartered accountant Syed Shabbar Zaidi the new chief of the Federal Board of Revenue after its top economic policy leadership was cleared out during bailout talks with the International Monetary Fund.
Asian shares staggered up from five-week lows on Tuesday but remained fragile after U.S. President Donald Trump’s latest threat to raise tariffs on Chinese goods shocked financial markets and fueled worries that trade talks may be derailed.MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 percent, erasing earlier losses. It tumbled 2 percent on Monday after Trump unexpectedly jacked up pressure on Beijing in the midst of trade negotiations.Chinese shares rose after their worst drop in more than three years on Monday. The benchmark Shanghai Composite advanced 0.6 percent, while the blue-chip CSI 300 climbed 1.0 percent. Hong Kong’s Hang Seng was up 0.7 percent.
Gold prices rose on Tuesday as U.S. President Donald Trump's threat to hike tariffs on Chinese imports re-kindled trade tensions between the two countries and pushed investors to seek insurance in safe-haven assets. Spot gold was up 0.2 percent at $1,282.50 per ounce as of 0320 GMT. U.S. GCv1 were unchanged at $1,283.90 an ounce.
Oil prices were under pressure on Tuesday from concerns the escalating Sino-U.S. trade dispute could slow the global economy, while U.S. sanctions on crude exporters Iran and Venezuela helped keep the market on edge.Brent crude oil futures were at $71.09 per barrel at 0341 GMT, 15 cents, or 0.2 percent, below their last close.U.S. West Texas Intermediate (WTI) crude futures were at $62.20 per barrel, 5 cents below their last settlement.Analysts said there were a number of factors driving oil prices.One is a concern that global economic growth is threatened by the intensifying trade dispute between the United States and China.Talks between the world’s two biggest economies hit a wall over the weekend, when U.S. President Donald Trump announced a raft of new import tariffs on Chinese goods.“U.S.-China trade tensions are set to be at the forefront of the market’s collective mind this week, as any nuance out of discussions in Washington could trigger knee-jerk moves by traders.