Rolling coverage of the latest economic and financial news, including the latest developments in the US-China trade row
- Introduction: Trade war fears abound
- Asian markets hit again
- Last night: Wall Street’s biggest fall in months
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.
Better news from Europe — shares are recovering in early trading, after hitting seven-week lows yesterday.
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.”
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
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.
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