Stocks are getting smoked amid trade war worries

Stocks are getting smoked amid trade war worries

The top-40 Alsi futures index lost 1.15% to 50,228 points on Friday, ending the week 3.28% lower. China claimed that the slides back its stance.

Foreign Ministry spokesperson Hua Chunying warned that Washington should not underestimate Bejing's resolve and its capability to punish the United States for "its recklness and willfullness".

So far, China's response to Trump's announcement has been muted.

But it also urged the Trump administration to resolve differences through dialogue. USDCHF now trades below its 200-day ma, a negative set-up, indicating further losses may lie ahead.

That will nearly certainly spell a further escalation of tensions.

There is no mistaking the fact that the U.S. president Donald Trump has given China the jitters the like of which it could hardly have dreamt of. "It is impossible to imagine that they can not", Robert Carnell, head of Asia Pacific Research at ING in Singapore, wrote in a client note.

"This is an opening gambit by China, signalling that the imposition of tariffs by the USA will elicit what Beijing views as a proportionate retaliatory response", said Eswar Prasad, a former chief of the International Monetary Fund's China division and now a professor at Cornell University in Ithaca, New York. "This can turn ugly on a global scale very quickly".

Meanwhile, Beijing has responded by listing 128 USA imports- including fruit, wine, and steel pipes, that it would place tariffs on worth up to $3 billion.

Traders in particular have focused on the risks to the global economy from tit-for-tat restrictions announced by the United States and China, along with increasingly protectionist moves by Washington elsewhere, as well? the United States has brought in tariffs on steel and aluminum, albeit with exemptions for key allies, and marginalized the World Trade Organization. The ministry is also contemplating targeting 128 American products through an imposition of a 15 percent tariff on American steel pipes, fruit and on wine imports.

Moody's said the direct impact of these trade measures on the American and Chinese economies will be limited; but warned that if they escalate, the global economy would be threatened. And French President Emmanuel Macron said Europe would respond "without weakness" to Washington's threats of tariffs on steel and aluminium. "Trump is negotiating. He's pushing back on the Chinese, and the Chinese will push back".

"China's response should follow the principle of a precision strike", wrote Mei Xinyu, a researcher at a Commerce Ministry think-tank in an opinion piece for China Daily.

"As there is no prospect of an easing in the U.S".

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European shares are uniformly lower around midday Friday, with little respite for the markets on the final day of a tough week for investors.

With real fears of a potential trade war dampening investor sentiment, the tone among markets was downbeat. The number of contracts traded was 23,677 from Thursday's 32,776. Last year, the United States imported $506 billion in goods from China. The move is created to cut the U.S. trade deficit and prevent alleged misappropriation of USA intellectual property.

"We have had success in finding new markets in many new areas of the world, it's just that when you have one customer that absorbs that much of a product in the world, it would be very hard to find other markets to replace it".

'We talk about everything in principle with a friendly country that respects WTO rules. Peterson says soybeans and soy products are America's leading agricultural export with a value of over 21 billion dollars a year ago alone. These countries will be willing to take charge if the US products become expensive in China. That could change if it puts tariffs on products like electronics or appliances imported from China.

US diplomats, business leaders and many experts, though, blame China for consistently failing to address long-standing demands to open its markets further.

"If they mark the start of an unravelling of the current rules-based architecture, the US and global economy will be significantly negatively affected", the rating agency said in a statement. "It's going to make us a much stronger, much richer nation".

After a seven-month investigation, the office of the US Trade Representative concluded that China hurts US technology companies in a variety of ways. "They won't clip the wings of China Inc", he said.

"It's remarkable how badly Xi Jinping has mishandled and damaged the U.S".

- New US National Security advisor John Bolton will likely harden foreign policy.

"Maybe he wanted it this way, but Xi missed every opportunity to negotiate good-faith solutions to trade and investment disputes".

For some in China, that sends a worrying message.

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