World stocks rattled as Trump says no China trade deadline
London: Global equities mostly retreated on Tuesday after US President Donald Trump warned there was no deadline for doing a trade deal with China.
The announcement added to trade uncertainty already stoked by the United States reimposing tariffs on Argentina and Brazil, threatening France with steep levies — and warning China of possible new measures if ongoing talks fall through.
Trump, in Britain for a NATO summit, warned that efforts to resolve a trade dispute could wait until after next November´s US election. Trump´s trade war with China and on-again off-again attempts to reach a deal have destabilised markets and stoked geopolitical tensions.
Analyst Neil Wilson at Markets.com said equity markets in Europe and US futures were hit as Donald Trump upped the ante again on trade. “The chances of a deal by December 15 just took another turn lower,” Wilson said. “After weeks of making generally positive noises on a deal being very close, there is a real sense now that a deal is not so very near at all and markets need to reprice.”
As recently as last week Trump boasted that he was in the “final throes” of negotiating “one of the most important deals in trade ever”. But Washington has since courted Chinese anger by expressing support for Hong Kong protesters.
Optimism that Beijing and Washington will eventually hammer out a partial agreement as part of a wider deal had supported equities for weeks, helping Wall Street to set numerous records. But investor sentiment was dealt a blow on Monday when Trump said he would reinstate tariffs on steel and aluminium from Argentina and Brazil whom he accused of manipulating their currencies and hurting US farmers.
Later, officials warned they would also hit France with up to 100