Trade war fears grip markets ahead of UK unemployment report – business live

Rolling coverage of the latest economic and financial news, including the latest developments in the US-China trade row

China’s foreign ministry is holding a briefing with journalists in Beijing now, and taking a tough line on trade.

Foreign ministry spokesman Geng Shuan says China hopes that the US doesn’t underestimate its determination to protect its interests. That’s the diplomatic equivalent of a sabre-rattle in the general direction of Washington.

Reuters: #China‘s foreign ministry says hopes #US does not underestimate Chinese determination to protect its interests

Reuters: #China‘s foreign ministry, asked about trade dispute with #US, says both countries have agreed to pursue talks process

Better news from Europe — shares are recovering in early trading, after hitting seven-week lows yesterday.

The trade tariff tit-for-tat is now being described as a “trade war” in China, a significant change in tone says @Steen_Jakobsen on @BloombergRadio

All the major Asian stock markets are in the red today, driven down by trade worries.

“In the short term, it looks like volatility is here to stay and we could see this risk-off, risk-on going on for a long time.”

Related: Global markets fall as China hits back at US with new import tariffs

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Wars, we’re told, are 99% boredom and 1% terror. But you simply can’t be bored by the US-China trade war, which has intensified dramatically this week.

Dow, S&P 500 set for worst May tumble in nearly 50 years amid U.S.-China trade clash https://t.co/BQgSYBLdVI pic.twitter.com/4aJoFRc6Sk

”Negotiate— we can!
Fight— bring it on!
Bully us— YOU WISH!”
-People’s Daily WeChat post entitled “This is #China’s attitude” on the escalating trade war with @realDonaldTrump pic.twitter.com/pqh7tZWSgg

Further uncertainty on the back of China’s retaliation to the US levies is forcing investors to go on full defensive mode. Safe haven assets gain as the 10-year US yields drop below 2.4%, reflecting market participants’ worries about the potential knock on effect of this re-escalation.

Growth on a global scale seemed to be pulling higher in recent weeks but Trump’s decision to put more pressure on China is again dampening any early optimism. Granted, there is still about a month before the new tariffs come into effect but, with both sides now back in the trenches, the risk lies to the downside

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Read the original at Economics | The Guardian.