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.
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
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.
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.
European markets also finished higher, with Germany’s DAX advancing strongly by 1.2 per cent.
Overnight, the Federal Reserve released the minutes of its June meeting, in which it lifted US interest rates for the second time this year.
The Fed discussed whether a recession is lurking around the corner, and expressed concerns that global trade tensions could affect the US economy, even though it looks strong by most measures.
Following the strong lead from foreign markets, Australian shares are expected to start the day higher.
The Australian dollar is steady at just over 73.8 US cents.
It is also buying 55.8 British pence, 63.2 Euro cents and 81.7