China trade dispute "not good" for global economy, Chilean minister

Posted March 25, 2018

Technology and industrial companies, basic materials makers and health care companies also fell sharply.

Fina n cial markets on Friday went into full-on risk adverse mode after the imposition of US trade tariffs on China and the promotion of foreign policy hawk John Bolton to the US National Security adviser.

Hua said the USA imported low-priced, labor-intensive products from China in large quantities, which considerably lowered the consumption costs for the United States consumers, increased consumers' surplus.

New Zealand - like the rest of the globe - now watching a standoff between the world's two biggest economies unfold. Still, Donisanu said that after last year's rally, investors are looking for new reasons to feel optimistic about stocks.

Other commodities did not fare as well amid the trade war fears, with copper on the London Metal Exchange falling to a three-month low of $6,628.00 per tonne.

Setting a downbeat tone for Asia, the Dow on Thursday shed 2.9 percent, the S&P 500 dropped 2.5 percent and the Nasdaq fell 2.4 percent. The Dow fell 724 points, or nearly 3%. Some of these concerns were allayed on Thursday when it was announced that Australia, Brazil, Canada, South Korea, and Mexico would be receiving a temporary exception.

EU Trade chief Cecilia Malmstrom said the plans for steel and aluminum tariffs "are a highly unfortunate unilateral action, which goes against agreed global rules".

Stocks sagged at the start of this month after the tariffs on aluminum and steel were announced, but they quickly recovered as the administration said the tariffs wouldn't be as severe as they first looked.

The Canadian dollar closed at 77.78 cents United States, up 0.31 of a U.S. cent following the latest reading on inflation in Canada.

A stroke of a pen could have brought the wrath of China onto the United States as President Donald Trump signed an executive order bringing in tariffs on trade with the country.

Adrian Lowcock, investment director at Architas said the level of tariffs introduced by the U.S. are "lower than expected" and China's response is "very restrained". It was the 10-year note's biggest fall in yield since September 2017.

Bond yields climbed earlier this week after the Federal Reserve raised interest rates, but then tumbled after the tariffs were proposed.

The S&P technology index has lost 5.3 percent in the past four days in the aftermath of Facebook's data privacy issues.

China said hours later that it "is not afraid of and will not recoil from a trade war". It was Wall Street's worst week in more than two years.

Overseas markets closed mostly lower.

Germany's DAX lost 1.8 percent and the French CAC-40 fell 1.4 percent. Britain's FTSE 100 dropped 1.2 percent. Hong Kong's Hang Seng lost 2.5 percent. Other health care stocks also sank.

Earlier in the session, prices touched their highest since Feb 20 at $1,343.06 US, and were on track for their best weekly performance since the week of February 16, rising over 2%.

The dollar fell 0.2 per cent against a basket of currencies.