Investors keep cards close to their chest
US President Donald Trump posted on social media that an 80 percent tariff on China ‘seems right.’
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Daily TribuneUS President Donald Trump posted on social media that an 80 percent tariff on China ‘seems right.’
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US President Donald Trump suggested lowering tariffs on Chinese products to 80 percent ahead of the first major talks aimed at defusing the trade war between the nations
Alex Wroblewski / AFP/File
Global markets awaited weekend US-China talks amid hopes for a de-escalation in the trade war between the world’s two largest economies.
“If ever there was a wait-and-see Friday, this is it,” said Art Hogan of B. Riley Wealth Management. “It’s all about our perceptions of how the trade war is going.”
Representatives from the two countries are scheduled to meet in Switzerland this weekend. Analysts do not expect a breakthrough but are hoping for de-escalation in the trade war.
US President Donald Trump posted on social media that an 80 percent tariff on China “seems right.”
That would be a shift from the three-digit levies the two countries have imposed on each other in recent weeks.
After opening higher following Trump’s remarks, US stocks moved in a choppy fashion, with the S&P 500 finishing narrowly lower.
Trump’s comments came a day after the United States and Britain announced the first agreement since the US President launched his tariffs blitz last month.
“Coming hot on the heels of yesterday’s UK-US trade deal, there is an air of optimism that we could see additional deals come to fruition around the globe,” said Joshua Mahony, chief market analyst at Scope Markets.
Frankfurt’s DAX rose 0.6 percent, hitting a fresh high of 23,543.27 points, recouping losses spurred by Trump’s April tariffs announcements.
Paris and London also climbed following a mixed showing in Asia.
Tokyo and Hong Kong closed higher, but Shanghai dropped. Data showed that China’s exports to the United States plunged by around one-fifth on-year in April as Trump’s tariffs kicked in.
Oil prices jumped on hopes that easing tensions between the United States and China would alleviate fears of a slump in crude demand.
The dollar dropped after rallying on news of the US-UK trade deal.
Lyft shot up more than 28 percent among individual companies as it announced a new $750 million share repurchase program after reporting mixed earnings.
