Asian Markets Rise as Trade Concerns Ease

Asian Markets Rise as Trade Concerns Ease

Asian Markets Rise as Trade Concerns Ease

USA stocks opened sharply lower after China unveiled plans to hit major United States exports such as soybeans, cars and small aircraft with retaliatory tariffs, which seemed to portend a worsening tit-for-tat conflict between the world's two biggest economies. President Donald Trump has proposed more tariffs on Chinese goods.

The market has been on a bumpy ride this week as traders try to get a sense of whether a trade dispute between the two nations will escalate.

Industrial companies might face the worst pain from tariffs, as they could find themselves dealing with higher costs for components imported into the US while the duties on their goods in China harm their sales.

There wasn't much for investors to like in the government's latest jobs report either.

Stocks are falling again as trade tensions heat up between the US and China.

"I'm not a fan of tariffs", he said, but added that they are "part of the process". "We're not quite sure what the long-term strategy is".

10 of 11 sector groups finished higher, with seven climbing more than 1%. Wall Street was poised for a lower opening with Dow futures and the broader S&P 500 futures down 0.8 percent. The Russell 2000 index of smaller-company stocks gained 19.51 points, or 1.3 percent, to 1,531.66.

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So they pay 2.5; we pay 25. "This is the dumbest possible way to do this", said the lawmaker from the farm-belt state of Nebraska. And Beijing has the economic equivalent of a nuclear weapon, holding more than one trillion dollars' worth of USA debt.

"The market is getting more concerned about the possibility of a trade war between the USA and China", said Tom Cahill, portfolio strategist at Ventura Wealth Management.

Beijing's countermove came after the Trump administration late Tuesday threatened to hit an identically valued $50 billion of Chinese imports with tariffs, in addition to the levies introduced on steel and aluminum last month. "It was an uncomfortable state to begin with, clearly the reaction from China to tariffs is clearly the only factor driving the markets today", said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin. The Dow had lost 800 points at one point in the trading session.

Germany's DAX was down 0.5 percent while France's CAC-40 fell 0.3 percent lower. Aerospace company Boeing rose $8.96, or 2.7 percent, to $336.40.

Some investors may have seen an opportunity to buy oversold stocks, said Brad McMillan, chief investment officer for Commonwealth Financial Network.

"It shows a willingness to go to the mat on this and fight it out", he said.

Stocks added to losses and hit session lows in afternoon trading on Friday after Federal Reserve chairman Jerome Powell said the U.S. central bank will likely need to keep hiking interest rates to keep inflation under control and said it was too soon to know if rising trade tensions would hit the USA economy.

Still, she said businesses support the idea of making changes in America's trade relationship with China.

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Employers added 103,000 jobs in March, which is weaker than the last few months.

Wells Fargo rose 1 percent and Citigroup gained 1.5 percent following upgrades by UBS.

The rally started late Wednesday as American and Chinese officials reassured investors they're willing to talk and aren't rushing into a trade war.

Bond prices rose, sending yields lower.

Wholesale gasoline stayed at $1.98 a gallon. JPMorgan Chase fell $3.23, or 2.9 per cent, to $108.65 and BB&T lost $1.89, or 3.6 per cent, to $51. For the week, the index fell 1.0 per cent.

Gold, considered a safe-haven investment, rose almost 1 percent. Silver edged up 1 cent to $16.36 an ounce. The yield on the 10-year Treasury note rose to 2.80 percent from 2.77 percent. The euro rose to $1.2278 from $1.2267.

The Dow Jones industrial average lost 152 points, or 0.6 percent, to 24,347.

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The pan-European FTSEurofirst 300 index, which closed before Powell's speech, fell 0.4 per cent, but ended the week 1.15 percent higher.

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