Latest news with #USChina
Yahoo
19 hours ago
- Business
- Yahoo
Consumer Sentiment Snaps 4-Month Decline After US-China Trade Deal, Survey Shows
Consumer sentiment stabilized in May after declining over the past four months as a US-China prelimi Sign in to access your portfolio
CNA
a day ago
- Business
- CNA
Global stocks mixed after Trump accuses China of violating tariff deal
NEW YORK: Global stocks finished mixed on Friday (May 30) after President Donald Trump put US-China trade tensions back on the boil by claiming Beijing had "totally violated" an agreement with Washington. His social media post came hours after US Treasury Secretary Scott Bessent said trade talks with China aimed at putting to bed sky-high mutual tariffs, currently suspended, were "a bit stalled". The development risks renewed trade tensions between the world's two biggest economies. On Wall Street, the Dow Jones Industrial Average closed higher, while the S&P 500 index was flat, and the tech-focused Nasdaq Composite fell 0.3 per cent. "If it weren't for the trade war, the market would be feeling pretty good," said Tom Cahill of Ventura Wealth Management. "Inflation is definitely moving in the right direction," he added, referencing the Federal Reserve's favoured inflation gauge, which cooled more than expected last month, according to fresh data published Friday. In Europe, London and Germany's major indices ended higher, while France's CAC40 closed lower, following declines in Asian markets earlier in the day. "UNDIPLOMATIC APPROACH" "If President Trump does slap tariffs back on Chinese imports to the US ... we may see demand for US assets, and the dollar, severely impaired by a chaotic and undiplomatic approach to trade policy," said Kathleen Brooks, research director at XTB. Despite rumbling concerns about the US-China economic relationship, the markets were little changed by Trump's criticism on social media, with investors appearing to be largely inured to the US president's now-familiar cycle of making dramatic trade threats and then retreating. Investors, traders and analysts instead focused on the Commerce Department's personal consumption expenditures (PCE) price index data, which rose 2.1 per cent in the 12 months to April, cooling slightly more than expected. Despite the good news for the Fed, which is looking to bring inflation down to its long-term target of 2 per cent, analysts warned that the fuller inflationary effects of Trump's tariffs were yet to come, and could cause the Fed to maintain its watch-and-wait stance. "The true weight of these policies is likely to emerge more fully in the months ahead," said market analyst Fawad Razaqzada. Investors were also assessing the impact of a US court ruling that invalidated most of Trump's sweeping tariffs, although an appeals court suspended that order and the White House vowed that its tariffs goals would be pursued one way or another. The result leaves Trump's tariff plans in something of "a legal limbo" said Stephen Innes, of SPI Asset Management, adding that this sort of legal impasse was "the kind that keeps traders awake at night." In the eurozone, interest rates were in focus after official data showed inflation hovering around the European Central Bank's 2 per cent target. Consumer prices in top EU economy Germany showed a 2.1 per cent rise in May – the same as the previous month – while they fell to 1.9 per cent in Spain, and to 1.7 per cent in Italy. The ECB looks set to lower interest rates again on Thursday. The dollar gained against major currencies, while oil prices were down ahead of a Saturday meeting of eight key OPEC+ members to decide production quotas for July, with some analysts predicting that the cartel could make a larger-than-expected supply hike.
CNA
a day ago
- Business
- CNA
Stocks mixed after Trump accuses China of violating tariff deal
NEW YORK: Global stocks finished mixed on Friday (May 30) after President Donald Trump put US-China trade tensions back on the boil by claiming Beijing had "totally violated" an agreement with Washington. His social media post came hours after US Treasury Secretary Scott Bessent said trade talks with China aimed at putting to bed sky-high mutual tariffs, currently suspended, were "a bit stalled." The development risks renewed trade tensions between the world's two biggest economies. On Wall Street, the Dow Jones Industrial Average closed higher, while the S&P 500 index was flat, and the tech-focused Nasdaq Composite fell 0.3 percent. "If it weren't for the trade war, the market would be feeling pretty good," said Tom Cahill of Ventura Wealth Management. "Inflation is definitely moving in the right direction," he added, referencing the Federal Reserve's favored inflation gauge, which cooled more than expected last month, according to fresh data published Friday. In Europe, London and Germany's major indices ended higher, while France's CAC40 closed lower, following declines in Asian markets earlier in the day. 'Undiplomatic approach' "If President Trump does slap tariffs back on Chinese imports to the US... we may see demand for US assets, and the dollar, severely impaired by a chaotic and undiplomatic approach to trade policy," said Kathleen Brooks, research director at XTB. Despite rumbling concerns about the US-China economic relationship, the markets were little changed by Trump's criticism on social media, with investors appearing to be largely inured to the US president's now-familiar cycle of making dramatic trade threats and then retreating. Investors, traders and analysts instead focused on the Commerce Department's personal consumption expenditures (PCE) price index data, which rose 2.1 percent in the 12 months to April, cooling slightly more than expected. Despite the good news for the Fed, which is looking to bring inflation down to its long-term target of two percent, analysts warned that the fuller inflationary effects of Trump's tariffs were yet to come, and could cause the Fed to maintain its watch-and-wait stance. "The true weight of these policies is likely to emerge more fully in the months ahead," said market analyst Fawad Razaqzada. Investors were also assessing the impact of a US court ruling that invalidated most of Trump's sweeping tariffs, though an appeals court suspended that order and the White House vowed that its tariffs goals would be pursued one way or another. The result leaves Trump's tariff plans in something of "a legal limbo" said Stephen Innes, of SPI Asset Management, adding that this sort of legal impasse was "the kind that keeps traders awake at night." In the eurozone, interest rates were in focus after official data showed inflation hovering around the European Central Bank's two-percent target. Consumer prices in top EU economy Germany showed a 2.1 percent rise in May, the same as the previous month, while they fell to 1.9 percent in Spain, and to 1.7 percent in Italy. The ECB looks set to lower interest rates again on Thursday. The dollar gained against major currencies, while oil prices were down ahead of a Saturday meeting of eight key OPEC+ members to decide production quotas for July, with some analysts predicting that the cartel could make a larger-than-expected supply hike.
Forbes
a day ago
- Business
- Forbes
China Market Update: Tariff Turnaround, Week In Review
CLN Yesterday's enthusiasm was short-lived as the US Court of Appeals for the Federal Circuit stated that tariffs can remain in place while the US Court of International Trade's decision that tariffs weren't imposed legally is appealed. President Trump announced on social media that other means for implementing tariffs would be examined, which shouldn't have surprised anybody. Not helping risk asset sentiment was Treasury Secretary Bessent's interview on Fox News that US-China trade talks were 'stalled' and likely needed a conversation between President Trump and President Xi. President Trump's June 14th birthday and President Xi's June 15th birthday could provide such an opportunity. Asian stocks were weak as the US dollar strengthened, Taiwan was closed for the Dragon Boat Festival, and Indonesia continued to be closed for Ascension Day. However, for the month, Asian markets posted small gains. Today is the official start of summer for international traders as today's MSCI Semi Annual Index rebalance occurs. For domestic traders, June 20th, triple witching day (the expiration of index and stock options and futures), is the official start, in my opinion. The power of passive was on full display as 92.9 million shares of Alibaba traded at the close in Hong Kong versus the total day's volume of 202 million shares, yesterday's volume of 74 million shares, and the 1-year average volume of 88 million shares. Despite its weight increasing in MSCI indexes, Alibaba's Hong Kong shares fell by -3.56% overnight, as Hong Kong-listed growth stocks, especially Apple's supplier ecosystem, took the tariff news on the chin. It was a fairly ugly day in Hong Kong with few bright spots. Nonetheless, Li Auto gained +3.79% after yesterday's Q1 financial results, CSPC Pharma gained +6.3%, Fosun Pharma gained +9.89%, and real estate developers were mostly higher. BYD fell -3.25%, despite a fantastic rebuttal from their PR General Manager Li Yunfei after Great Wall's CEO accused BYD of being an auto industry Evergrande. He compared the company's financials, including revenue, debt-to-asset ratio, and liabilities, to those of global companies, highlighting the company's strong financial position. Bravo! Mainland investors bought today's dip with a healthy $1.2 billion worth of net buying via Southbound Stock Connect. Interestingly, Meituan, which fell -1.5%, has seen healthy buying via Southbound Stock Connect over the last two weeks. Mainland China had fewer banks, as technology and growth names were weak, especially in electronic equipment, semiconductors, biotechnology, and software. Volumes in the ETFs favored by China's 'National Team', i.e. investment firms associated with sovereign wealth, were below average, though two ETFs have seen strong inflows in the last week. The 2025 Lujiazui Forum, taking place on June 18th and June 19th, will include speakers from the People's Bank of China (PBOC), the Banking and Insurance Regulatory Commission (CBIRC), the China Securities Regulatory Commission (CSRC), the State Administration of Foreign Exchange (SAFE), and the Shanghai Municipal Government. Let's hope they announce further economic and policy support! May purchasing managers' indexes (PMIs) will be released this weekend. A mainland media source noted that, within President Trump's budget bill, which the House passed, are provisions to 'significantly increase the foreign investment tax rate for 'discriminatory' countries, up to 20 percentage points based on the statutory tax rate', which threatens to 'escalate the trade ware into a capital war'. Article 899 would allow the Treasury Secretary to label foreign country taxes on digital services as discriminatory, allowing for an additional 5% tax increase per year to a maximum of 20% on income earned by foreign individuals and companies from US investments, including interest and dividends. The concern is the effect on foreign investors' appetite for US Treasury bonds and, to a lesser degree, US stocks. Bloomberg wrote about it yesterday, stating that the countries in focus include Canada, the UK, France, and Australia. The belief is that foreign investors from targeted countries will exit their US Treasury positions, which would also weigh on the US dollar. I don't see anything mentioning capital gains, as interest and dividends are the focus. Regardless, this sounds like a terrible idea! I am off to Asia for work this weekend! I look forward to providing more insights from on the ground next week. Live Webinar Join us Friday, May 30, at 11 am EDT for: Innovation In Hedged Equity - With Hedgeye's CEO Keith McCullough Please click here to register New Content Read our latest article: New Drivers For China Healthcare: AI Med-Tech Innovation, Cancer Treatment, & Favorable Balance of Trade Please click here to read Chart1 Chart2 Chart3 Chart4 Chart5 Chart6
BBC News
a day ago
- Business
- BBC News
US and China trade talks have stalled, Scott Bessent says
Trade talks between the US and China are "a bit stalled", the US Treasury Secretary Scott Bessent has said. His comment comes less than three weeks after a temporary trade truce was agreed between the world's two largest economies, with both agreeing to reduce tit-for-tat told Fox News on Thursday: "I think that given the magnitude of the talks, given the complexity, that this is going to require [leaders of both the countries] to weigh in with each other".Donald Trump's global tariff regime was dealt a blow on Wednesday following a ruling that he had exceeded his authority. His plans have been temporarily reinstated after the White House appealed the decision. Both the US and China confirmed they would reduce tariffs imposed on each other's imports earlier this month, following talks in deal involved both nations cancelling some tariffs altogether and suspending others for 90 days by 14 said talks on a further deal had lost momentum, but stressed that they were continuing. "I believe that we will be having more talks with [China] in the next few weeks and I believe we may at some point have a call between the president and [Chinese President Xi Jinping]," Bessent said on Thursday. He added that the pair had "a very good relationship" and he was "confident that the Chinese will come to the table when President Trump makes his preferences known". Under the deal struck earlier this month, the US lowered tariffs imposed on goods from China from 145% to 30%. China's retaliatory tariffs on US goods dropped from 125% to 10%. The US President has argued imposing tariffs on foreign goods would encourage US consumers to buy more American-made goods, bringing back manufacturing jobs while increase the amount of tax revenue raised. They have been used by the Trump administration as leverage in negotiations as it seeks to reduce trade deficits with other nations.A delegation from Japan are continuing trade talks with their US counterparts in Washington on Friday. Bessent said "a couple" of US trade deals were "very close", but "a couple of them are more complicated".Trump's tariff regime remains in the balance following the decision by the US Court of International Trade, which ruled that Trump had overstepped his power by imposing the analysts believe it will mean countries will be less likely to rush to secure trade deals with the US. A federal appeals court has granted a bid from the White House to temporarily suspend the lower court's order, which Trump described as "horrific"."Hopefully, the Supreme Court will reverse this horrible, Country [sic] threatening decision, QUICKLY and DECISIVELY," he wrote on his Truth Social platform.
