LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Global stock markets: Shares, yuan fall on growing uncertainty over US-China trade talks

U.S. stock futures fell and Asian shares slipped on Monday on growing uncertainty over whether the United States and China will be able to reach a deal to end their escalating trade war. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Global stock markets: Shares, yuan fall on  growing uncertainty over US-China trade talks
E-Mini futures for the S&P 500 shed 1.0%. MSCI`s broadest index of Asia-Pacific shares outside Japan dropped 0.4%, nearing its two-month low marked on Thursday. Image source: Reuters
Written By: Reuters
Updated: Mon, May 13, 2019
08:21 am
Reuters
RELATED NEWS
In chat with Anil Singhvi, analyst Vikas Sethi picks Kotak Bank, RIL as top buys for big returns In chat with Anil Singhvi, analyst Vikas Sethi picks Kotak Bank, RIL as top buys for big returns
Mid-Cap Picks with Anil Singhvi: Huhtamaki PPL, PNB Housing and Rallis India are stocks to buy today Mid-Cap Picks with Anil Singhvi: Huhtamaki PPL, PNB Housing and Rallis India are stocks to buy today
Heranba Share Price – After bumper listing, is the stock cheaper or expensive? See this EXCLUSIVE research Heranba Share Price – After bumper listing, is the stock cheaper or expensive? See this EXCLUSIVE research
IRCTC Share Price Outlook: Anil Singhvi predicts Rs 2500 target, lists out reasons to buy IRCTC Share Price Outlook: Anil Singhvi predicts Rs 2500 target, lists out reasons to buy
Heranba IPO listing is a big success; now, experts unveil this money-making strategy - buy these stocks Heranba IPO listing is a big success; now, experts unveil this money-making strategy - buy these stocks

U.S. stock futures fell and Asian shares slipped on Monday on growing uncertainty over whether the United States and China will be able to reach a deal to end their escalating trade war. The United States and China appeared at a deadlock over trade negotiations on Sunday as Washington demanded promises of concrete changes to Chinese law and Beijing said it would not swallow any "bitter fruit" that harmed its interests.

E-Mini futures for the S&P 500 shed 1.0%. MSCI`s broadest index of Asia-Pacific shares outside Japan dropped 0.4%, nearing its two-month low marked on Thursday. Chinese shares tumbled, with the benchmark Shanghai Composite and the blue-chip CSI 300 shedding 1.4% and 1.6%, respectively, while Hong Kong`s financial markets were closed for a holiday.

Japan`s Nikkei average sunk as much as 1.0% to hit its lowest level since March 28. It last traded down 0.5%. U.S. benchmark 10-year Treasury note yield inched down to 2.441%, partly as a safe haven but also on speculation that the escalating trade war would put more pressure on global growth and thus keep major central banks accommodative. President Donald Trump tweeted late on Sunday that the United States is "right where we want to be with China," adding that Beijing "broke the deal with us" and then sought to renegotiate.

The trade war between the world`s top two economies escalated on Friday, with the United States hiking tariffs on $200 billion worth of Chinese goods after Trump said Beijing "broke the deal" by reneging on earlier commitments. China has vowed to retaliate, without giving details. White House economic adviser Larry Kudlow told a Fox News program that China needs to agree to "very strong" enforcement provisions for an eventual deal and said the sticking point was Beijing`s reluctance to put into law changes that had been agreed upon. Kudlow said the U.S. tariffs would remain in place while negotiations continue. 

Beijing remained defiant.
"Talks are on-going, but our base case is for limited progress and Chinese retaliation. We see a significant risk for all Chinese imports to be subject to tariffs over the next month or so," said Michael Hanson, head of global macro strategy at TD Securities. "The market reaction will ultimately depend on whether China and the U.S. continue to negotiate, whether the remaining $325 billion of U.S. imports from China also get tariffed, how China retaliates, and what happens to the (section) 232 auto tariffs."

Under that scenario, the renminbi was likely to fall between 5%-6% against the U.S. dollar in the coming three months, said Hanson, as a shock absorber to the economic impact of heavier tariffs. The offshore Chinese yuan fell to its lowest levels in more than four months at 6.88 to the dollar. It last stood down 0.4% at 6.872 per dollar.

The other major currencies were relatively calm, with the safe-haven yen still supported but not aggressively so. The dollar was holding at 109.74 yen, down 0.2% on the day and just above a 14-week trough of 109.46. The euro was steady at $1.1233, while the dollar was little changed against a basket of currencies at 97.296.

"If there is a lack of progress (in U.S.-China trade talks) over the coming weeks, Asian currencies will come under further pressure," noted Khoon Goh, head of Asia research at ANZ Research, while adding that his team does not expect the yuan will break the psychological 7 per dollar level. "While we hope for the best, our baseline case is now for the United States and China to fail to reach a deal, meaning tariffs will get raised on the remainder of Chinese exports to the United States." 

In commodity markets, oil prices were softer in line with the general mood of risk aversion. U.S. crude was last down 0.1% at $61.54 a barrel, while Brent crude futures stood flat at $70.65.  Spot gold firmed 0.1 percent to $1,286.59 per ounce. On the other hand, digital currencies maintained most of their big gains made over the weekend. Bitcoin jumped more than 10 percent on Saturday and marked its nine-month high of $7,585.00 on Sunday before paring the gains. It last quoted at $7041.05, up 1.0 percent on the day.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Markets
RELATED NEWS
In chat with Anil Singhvi, analyst Vikas Sethi picks Kotak Bank, RIL as top buys for big returns In chat with Anil Singhvi, analyst Vikas Sethi picks Kotak Bank, RIL as top buys for big returns
Mid-Cap Picks with Anil Singhvi: Huhtamaki PPL, PNB Housing and Rallis India are stocks to buy today Mid-Cap Picks with Anil Singhvi: Huhtamaki PPL, PNB Housing and Rallis India are stocks to buy today
Heranba Share Price – After bumper listing, is the stock cheaper or expensive? See this EXCLUSIVE research Heranba Share Price – After bumper listing, is the stock cheaper or expensive? See this EXCLUSIVE research
IRCTC Share Price Outlook: Anil Singhvi predicts Rs 2500 target, lists out reasons to buy IRCTC Share Price Outlook: Anil Singhvi predicts Rs 2500 target, lists out reasons to buy
Heranba IPO listing is a big success; now, experts unveil this money-making strategy - buy these stocks Heranba IPO listing is a big success; now, experts unveil this money-making strategy - buy these stocks

LATEST NEWS

Reliance Jio low-cost laptop 'JioBook' that runs on Android coming soon; Here's all you need to know

#StockOftheDay: Know which stock Anil Singhvi recommended today and the reason behind it

Stocks to buy with Anil Singhvi: Sandeep Jain recommends Wonderla Holidays today | Money-making Tips!

Pope Francis arrives in Baghdad for risky, historic Iraq tour

IRCTC Share Price Outlook: Anil Singhvi predicts Rs 2500 target, lists out reasons to buy

TMC Candidates List 2021 - Names of 291 candidates announced for West Bengal Elections; See Complete List Here

TANCET 2021: Anna University to release admit cards for the exam today: Check here where to download, exam dates and all other details at tancet.annauniv.edu/tancet

West Bengal, Assam Assembly elections 2021: After TMC, BJP likely to release candidates lists today

Aadhaar card-based driving licence service: Check step by step guide to renew your driving licence online without going to RTO

HSSC Recruitment 2021: Application forms reopened for Patwari, Canal Patwari and Gram Sachiv posts; Check where to apply online and how

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved