Wall Street gains wiped out by fears of trade war


Trump has long threatened to impose tariffs on all remaining Chinese imports into the United States, which exceed Dollars 257 billion, if Beijing fails to meet U.S. demands for sweeping changes to Chinese trade, technology transfer and industrial subsidy policies.

The study notes, "despite the fact that more than 70% of USA companies consider the suspension of investment in China and moving some or all production overseas, only half of Chinese companies support this approach", reports UKRINFORM. According to Bloomberg News, the additional tariffs will be announced in December if no breakthrough results from the meeting.

The Japanese yen fell 0.4 percent to 112.34 per dollar, the biggest dip in nearly two weeks. Experts say it was hurt by one-off factors like new emissions standards for cars, so growth is likely to pick up again.

Other members of the so-called FAANG group also sold off. Apple shed 1.9 percent while Facebook gave up 2.3 percent. The Russell 2000 index of smaller-company stocks dropped 0.4 percent to 1,447.31.

The Dow Jones Industrial Average rose 192.43 points, or 0.79 per cent, to 24,635.35, the S&P 500 gained 13.94 points, or 0.53 per cent, to 2,655.19 and the Nasdaq Composite added 37.58 points, or 0.53 per cent, to 7,087.87.

Over the past year, said Cui, "we have heard enough of trade war threats, assertions about strategic rivalry, sabre rattling in the South China Sea, and even unfounded accusations against Chinese students and scholars".

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China's ambassador to the United States said on Tuesday that the "goodwill" and "wisdom" of the Chinese and American people would carry the countries through a tense period in their relations, and that "we have heard enough" of trade war threats and territorial sabre rattling.

Although most tech firms fell Monday, open-source software company Red Hat soared 45.4% to $169.63 - reversing its losses from earlier this year - after IBM agreed to buy it for $34 billion in stock.

Futures signaled gains for equities in Hong Kong and China, while Japanese stocks were seen opening slightly lower. China has retaliated with its own tariffs on U.S. products. The euro fell to $1.1354 from $1.1372.

Brazil's Bovespa rose in morning trading after far-right politician Jair Bolsonaro was elected president, but it later ended down 2.2%. The yen edged lower after the Bank of Japan left its monetary stimulus unchanged and kept its 10-year bond yield target at about zero percent. Brent crude, used to price worldwide oils, lost $1.14 to $76.20 per barrel.

US crude fell 1.28 percent to $66.18 per barrel and Brent was last at $76.07, down 1.64 percent. Silver fell 1.8 percent to $14.44 an ounce.

The dollar rose to 112.35 yen from 111.85 yen.