Australian shares are set to rise in early trade after a rebound in foreign markets, as optimism about earnings season trumped fears of a US-China trade war.
However, China warned that foreign firms operating in its borders would suffer in a trade war, and said no talks to end the impasse were currently underway.
Markets at 7:00am (AEST):ASX SPI 200 futures +0.4pc to 6,240, ASX 200 (Thursday’s close) +0.9pc at 6,268AUD: 74.07 US cents, 56.07 British pence, 63.45 Euro cents, 83.34 Japanese yen, $NZ1.09US: Dow Jones +0.9pc at 24,925, S&P 500 +0.9pc at 2,798, Nasdaq +1.4pc at 7,824Europe: FTSE +0.8pc at 7,651, DAX +0.6pc at 12,493, CAC +1pc to 5,406, Euro Stoxx 50 +0.7pc at 3,446Commodities: Brent crude +1.4pc at $US74.40/barrel, spot gold +0.4pc at $US1,246.77/ounce, iron ore +1.1pc at $US64.06/tonne
“We hope US firms can do more to lobby the US Government, and work hard to defend their own interests,” Chinese commerce ministry spokesman Gao Feng told a media briefing.
“The precondition for negotiations is trust.
“From what I’ve learnt, both sides [the US and China] have not been in touch about restarting talks.”
On Wednesday, Beijing said it would hit back after the Trump administration threatened to impose 10 per cent tariffs on $US200 billion worth of Chinese goods.
It has yet to announce how it will respond after the latest round of US tariffs.
China only imported about $US130 billion worth of goods from America last year.
In order to retaliate, China might increase the size of the tariffs it imposes or resort to what it calls “qualitative” measures, which US businesses fear could mean reprisals against their China operations.
Australian dollar rebounds
The Australian dollar