Wall Street falls as US-China trade tensions rise

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Broad gains in the USA equity market turned global stocks higher on Tuesday after President Donald Trump said a "great deal" could be struck with China that would relieve fears of a growing trade war between the world's two largest economies.

According to the Bloomberg report, the new list would cover the $257 billion worth of Chinese goods not already affected by tariffs and would come into effect by February, following a 60-day public comment period.

For most of this year, investors have remained hopeful that the United States and China would work out their disagreements on trade policy and that numerous tariffs would be reduced or eliminated.

He said he has 267 billion dollars of new tariffs waiting to go if he can not make a deal with China. They've been taken out an average of USD500 billion a year for many years. China has retaliated with its own tariffs on USA products.

Early trading was a reflex reaction as investors bought into last week's weakness, said Craig Fehr, Canadian markets strategist for Edward Jones. It fell as much as 566 during the day.The Nasdaq composite, which is heavily weighted with technology stocks, lost 116.92 points, or 1.6 percent, to 7,050.29.

The S&P 500 index fell 17.44 points, or 0.7%, to 2,641.25 on Monday.

According to a Bloomberg report citing anonymous sources, no decisions have been made, but a new list of United States tariffs was being prepared in case the Trump-Xi meeting does not yield progress.

NAB's Mark Todd said he doesn't see China or United States backing down.

Marijuana producers pushed health care stocks higher by 1.4 per cent. Aphria Inc. rose 6.3 per cent, while Aurora Cannabis Inc. and Canopy Growth Corp. increased 2 per cent and 1.5 per cent, respectively. The reason the yuan is being dumped now is that investors are concerned about a trade war between America and China. Its stock traded above $2,000 a share in early September and has fallen 24.5 percent since then.The S&P 500, the main benchmark for the USA stock market, has fallen 9.9 percent from its latest record high on Sept. 20. Miners and energy companies led the way as nearly every sector on the Stoxx Europe 600 Index climbed. Brent crude, used to price global oils, lost $1.14 to $76.20 per barrel. The MSCI All-Country World Index has dropped more than 8 percent in October, poised to post the worst monthly performance since May 2012.

The euro was flat at $1.1392.

Benchmark 10-year U.S. Treasury notes last fell 7/32 in price to yield 3.1132 percent, from 3.087 percent late on Monday.

The dollar rose to 112.35 yen from 111.85 yen.