London share prices PLUMMET amid US-China trade war fears — FTSE latest

Cornelia Mascio
Dicembre 7, 2018

Another significant take-away from the preliminary agreement could be its impact on energy markets, both US oil import to China and perhaps even more importantly from a development perspective liquefied natural gas (LNG) imports.

That gives the president 24 hours to fix the damage inflected when the market plunged nearly 800 points on Tuesday after a series of tweets from Trump suggested a trade war with China could resume next year.

The Dow Jones Industrial Average shed 3.1% while the tech-dominated Nasdaq was nearly 4% down by the close.

The remarks, by the Chinese Commerce Ministry, follow a period of relative quiet from Beijing after Trump and Chinese leader Xi Jinping reached a temporary truce in their trade war at a meeting over dinner in Argentina on Saturday.

The threat of further escalation in the trade war between the world's two largest economies has loomed large over financial markets and the global economy for much of the year, and investors initially greeted the ceasefire with relief.

Trump agreed Saturday to postpone USA tariff hikes in a fight over technology by 90 days while the two sides negotiate.

Failure would raise the specter of a major escalation in the trade battle, with fresh USA tariff action and Chinese retaliation possibly as early as March.

White House economic adviser Larry Kudlow said a reduction in Chinese tariffs on US cars and agricultural and energy commodities would be a "litmus test" for whether US-China trade talks were on track to succeed. The statement did not mention Trump or Xi, however the state news agency Xinhua later said the ministry statement was hailing their meeting.

"We are confident in implementation ..."

In a statement, ministry said, "The economics and trade teams of both sides will actively push forward negotiations within 90 days in accordance with a clear timetable and roadmap".

"The Chinese side will start with implementing specifics on which there is already consensus, the faster the better".

Officials from the United States and a number of other major economies have often criticized China for its slow approach to negotiations and not following through on commitments.

"Ultimately, I believe, we will be making a deal - either now or into the future", he wrote.

He also signaled optimism that President Xi Jinping would deliver on his promise, after their meeting in Argentina.

China's Ministry of Commerce did not respond to phone calls and a faxed request to comment. China's government has been slow to formulate its response to the summit as senior officials were still out of the country with Xi, Bloomberg News reported.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE