US and European markets were unfazed, making strong gains ahead of the Trump administration imposing $46 billion ($US34b) worth of tariffs on China’s imports tomorrow.
US President Donald Trump is expected to follow though on his threat, and Beijing said it would retaliate immediately with its own tariffs on US goods.
There has been no evidence of any last-minute negotiations between the world’s two largest economies, according to business sources from the US and China.
Markets at 7:10am (AEST):ASX SPI 200 futures +0.5pc to 6,195, ASX 200 (Thursday’s close) +0.5pc at 6,216AUD: 73.85 US cents, 55.84 British pence, 63.15 Euro cents, 81.7 Japanese yen, $NZ1.09US: Dow Jones +0.8pc at 24,357, S&P 500 +0.9pc at 2,736, Nasdaq +1.1pc at 7,586Europe: FTSE +0.4pc at 7,603, DAX +1.2pc at 12,464, Euro Stoxx 50 +0.9pc at 3,441Commodities: Brent crude -0.8pc at $US77.59/barrel, spot gold +0.1pc at $US1,257.33/ounce, iron ore -1.7pc at $US63.14/tonne
On Wall Street, technology stocks experienced the biggest gains, which led to the Nasdaq index jumping 1.1 per cent.
The S&P 500 lifted by point nine of a per cent.
The Dow Jones index rose 182 points, or 0.75 per cent, to 24,357.
“There’s a lot of uncertainty, but the markets have reacted fairly calmly and rationally,” said Oliver Pursche, chief market strategist at Bruderman Asset Management.
“There’s been a lot of rhetoric but not a lot of actual action in terms of a trade war.”
Earlier, US stocks rose as reports suggested the United States could walk back threatened tariffs on European cars if the European Union scrapped duties on US cars in return.
European markets also finished higher, with Germany’s DAX advancing strongly by 1.2 per cent.
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