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Markets mostly rise between trade war salvos
NEW YORK, Sept 20, 2018 (BSS/AFP) – Global stocks mostly pushed higher on
Wednesday as investors looked past the latest tit-for-tat tariffs by China
and the United States.
US President Donald Trump said he will impose 10 percent levies starting
next week on another $200 billion of imports from China, prompting Beijing to
target $60 billion of US goods with five to 10 percent taxes.
Beijing rejected Trump’s claim that it was tailoring retaliatory tariffs
goods with an eye towards hitting the US president in the upcoming midterm
elections, and called on the United States to show “respect” to China.
The developments were a clear escalation in the months-long standoff
between the world’s top two economies. However, analysts said the measures
were not as painful as they could have been.
“Now that Washington DC and Beijing have stepped up their tactics, there
is a feeling in the markets that a weight has been lifted as we have gotten
over a hump,” said market analyst David Madden at CMC Markets UK.
“The trade dispute may have taken a turn for the worse, but traders aren’t
expecting another escalation in the near-term,” he said.
Gregori Volokhine, president of Meeschaert Financial Services, also
downplayed the impact of the latest round of tariffs, saying they “are not
going to hurt because orders for Christmas goods have already been
delivered.”
Europe’s main markets followed Asian markets higher.
Meanwhile on Wall Street, the Dow finished up 0.6 percent, bolstered by
big gains in banks JPMorgan Chase and Goldman Sachs. The Nasdaq finished
narrowly negative.
Investors were also tracking a meeting of European leaders in Salzburg,
Austria, for a summit to set up the last stretch of talks for a Brexit deal.
EU Council President Donald Tusk opened a crucial summit in the Austrian
city of Salzburg with a stark warning that Britain’s position on key issues
must be “reworked.”
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He warned negotiations on Britain’s withdrawal from the European Union
were reaching a “decisive phase,” amid fears it could crash out in March next
year without a deal.
But as she arrived for the summit, British Prime Minister Theresa May said
Brussels must also give ground.
“If we are going to achieve a successful conclusion then, just as the UK
has evolved its position, the EU will need to evolve its position too,” she
said.
“I am confident that with goodwill and determination we can agree a deal
that is right for both parties.”
The pound initially leapt on news that Britain’s annual inflation rate
unexpectedly hit a six-month high in August, but it later gave up those gains
on the latest snags in the Brexit talks.
– Key figures around 2100 GMT –
New York – Dow Jones: UP 0.6 percent at 26,e)
New York – S&P 500: UP 0.1 percent at 2,907.95 (close)
New York – Nasdaq: DOWN 0.1 percent at 7,950.04 (close)
London – FTSE 100: UP 0.4 percent at 7,331.12 (close)
Frankfurt – DAX 30: UP 0.5 percent at 12,219.02 (close)
Paris – CAC 40: UP 0.6 percent at 5,393.74 (close)
EURO STOXX 50: UP 0.3 percent at 3,368.56 (close)
Tokyo – Nikkei 225: UP 1.1 percent at 23,672.52 (close)
Hong Kong – Hang Seng: UP 1.2 percent at 27,407.37 (close)
Shanghai – Composite: UP 1.1 percent at 2,730.85 (close)
Euro/dollar: UP at $1.1675 from $1.1667 at 2100 GMT
Pound/dollar: DOWN at $1.3146 from $1.3148
Dollar/yen: DOWN at 112.26 yen from 112.36 yen
Oil – Brent Crude: UP 37 cents at $79.40 per barrel
Oil – West Texas Intermediate: UP $1.27 at $71.12 per barrel
BSS/AFP/HR/1032