World stocks fall and the dollar strengthens as trade war fears come back
London — World stocks fell and the dollar strengthened on Wednesday on fears of an imminent escalation in the US-China tariff war, although strong corporate earnings eased investor concerns about a recent sell-off in the tech sector. Conflicting signs over which direction the trade conflict between the US and China is headed have yanked markets in opposite directions. A Bloomberg report that the world’s two largest economics were looking to resume trade talks to defuse a battle over import tariffs saw stock markets edge up globally on Tuesday. However, a source said the Trump administration plans to propose a 25% tariff on $200bn in Chinese imports, up from an original 10%, in a bid to pressure Beijing into making trade concessions. This injected uncertainty into financial markets and new concern about what it would mean for China and the global economy.
Chinese shares, the offshore yuan and the Australian dollar all weakened. European shares were mixed as a fresh batch of pos...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.