Stocks took a dive after US president Donald Trump made Twitter threats and announced higher tariffs in response to new Chinese import taxes.
New Zealand’s stock exchange could be in for a “rough day” of trading after tweets by United States President Donald Trump last week ramped up tensions in a US/China trade war.
On Saturday morning (New Zealand time) Trump sent a series of tweets ordering American companies to immediately move their manufacturing back to the US.
“The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must stop. Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies home and making your products in the USA,” Trump tweeted.
The comments shocked the markets with US stock exchanges S&P, Dow Jones and Nasdaq all ending the day down.
* US President Donald Trump lashes out, calls China’s Xi Jinping an ‘enemy’
* Global trade is at stake as Donald Trump and Xi Jinping come face to face
* China gets out big stick to retaliate against Donald Trump on trade
* China retaliates with new tariffs on US meat, fruit, other products
Trump later said he would be raising planned tariffs on Chinese goods.
New Zealand’s stock exchange the NZX was closed when US President Donald Trump made comments ramping up the trade war between the US and China.
Stock markets in this part of the world had already closed for the week when Trump made his announcements.
The New Zealand stock market, the NZX, was down 1.4 per cent in the first hour of trading on Monday.
Craig Investment Partners head of private wealth research Mark Lister said most, if not all markets in the region would