GLOBAL FX
The US is preparing to slap tariffs on remaining Chinese imports, which could add levies on goods worth roughly $300 billion thus expanding US tariffs to cover all $540 billion in Chinese imports, according to a May 13 release by the Office of the US Trade Representative. With hopes fading for an early resolution of the year-long US-China trade dispute, President Trump said he would meet Chinese President Xi Jinping at the G20 leaders' summit in Osaka, Japan, on June 28-29. Trump said in remarks at the White House. “We’re going to be meeting, as you know, at the G20 in Japan and that’ll be, I think, probably a very fruitful meeting.
The U.S. Trade Representative’s office said later it planned to hold a public hearing next month on the possibility of imposing duties of up to 25% on a further $300 billion worth of imports from China. Cellphones and laptops would be included in that list but pharmaceuticals would be excluded, the office said.
China on Monday announced it would impose higher tariffs on $60 billion of U.S. goods following Washington's decision last week to hike its own levies on $200 billion in Chinese imports.“Now that China has started retaliating, the tension seems escalating.The trade tiff between the US and China worsened after the Chinese government said it will impose tariffs on American products worth $60 nillion in retaliation for US tariff hike came into effect on Friday.
Australian dollar found their footing again on Tuesday as broader sentiment stabilized after U.S. President Donald Trump said he expected Sino-U.S. trade negotiations to be successful.
Indian sugar production in 2019/20 is expected to decline 8.4% from the record-large 2018/19 crop to 30.3 million tonnes, the U.S. Department of Agriculture attache in New Delhi said in a report.Output is expected to fall as the area under harvest contracts and the average sugar recovery rate declines, and as ethanol becomes an increasingly attractive option for cane mills, the attache said.Uttar Pradesh is expected to again be the top-producing state, with anticipated production gains there in 2019/20 partially offsetting lower output from Maharashtra and Karnataka.
Fresh volleys in the U.S.-China tariff war pressured Asian shares on Tuesday, but comments from U.S. President Donald Trump that he expects trade negotiations to be successful eased some worries.Chinese markets that were pummeled in early trade swung in and out of the red amid signs of state support, but ended the day lower.Late on Monday, Trump said trade talks with China are “going to be very successful”. That helped lift U.S. stock futures, which had been down, to be more than 0.4% up, though sentiment remained fragile.
British Prime Minister Theresa May was under pressure from her own party on Tuesday to abandon a bid to find a Brexit compromise with the opposition Labour Party.Nearly three years since the United Kingdom voted 52% to 48% to leave the European Union, there is still no agreement among British politicians about when, how or even if the divorce should take place.
Thailand’s exports could fall between $5.6 billion to $6.7 billion because of new U.S. tariffs on Chinese goods, the Thai commerce ministry said on Tuesday.Such goods cover about 46 percent of Thai exports, ministry official Pimchanok Vonkhorporn said in a statement.Shipments of electronics and automobiles are expected to decline sharply, Pimchanok said. So far this year, the United States and China have been Thailand’s two biggest export markets.
Gold prices held steady near one-month highs on Tuesday as an escalation in the Sino-U.S. trade dispute sent investors looking for safe-haven assets.Spot gold was mostly steady at $1,298.63, as of 0603 GMT, after hitting $1,303.26, its highest since April 11.U.S. gold futures were down 0.2% at $1,299.40.
Oil prices were moving higher on Tuesday, though gains were checked amid an escalation in the trade war between the United States and China.Brent crude futures were at $70.30 a barrel at 0318 GMT, up 7 cents, or 0.1%, from their last close. Brent ended the previous session down 0.6%.U.S. West Texas Intermediate (WTI) crude futures were at $61.11 per barrel, up 7 cents, or 0.1%, from their previous settlement. WTI closed down 1% on Monday.