Shanghai markets were hardest hit overnight, with stocks there down almost 2 per cent and the yuan weakening towards last week’s 11-month lows, down 0.4 per cent to 6.66 per dollar
Reuters | London/New York Last Updated at July 11, 2018 23:32 IST
Stocks fell and metals prices slumped to their lowest in a year on Wednesday, as US threats of tariffs on an additional $200 billion worth of Chinese goods pushed the world’s two biggest economies ever closer to a full-scale trade war.
The detailing overnight of US President Donald Trump’s already-threatened 10 per cent tariffs on an additional $200 billion of Chinese goods dampened hopes that Washington will eventually step back from the escalating row.
The clock now starts ticking on a two-month period of public comment before the levies get imposed. Trump has said he may ultimately target more than $500 billion worth of Chinese goods, the total amount of US imports from China last year.
Shanghai markets were hardest hit overnight, with stocks there down almost 2 per cent and the yuan weakening towards last week’s 11-month lows, down 0.4 per cent to 6.66 per dollar. Hong Kong’s Hang Seng lost more than 1 per cent, as did Japan’s Nikkei as the yen received something of a safety bid.
Europe’s main bourses, also taken aback as Trump kicked off a NATO summit in Brussels by accusing Germany of being a “captive” of Russia, then saw similar falls.
“There is still a good six or seven weeks before these (tariffs) take effect so it is not like we are going to see these tomorrow, but it is definitely the next step in a trade war,” TD Securities global strategist James Rossiter said.
“I am curious to see what China does to retaliate