After the trade talks between China and U.S., the stock market fell on Monday, economists warned that a growing dispute on trade and technology would harm economic growth.
In Paris, the CAC 40 mid-day trading fell by 0.5% to 5,298, while Germany’s DAX grew 0.7% to 11,970. In the UK, FTSE 100 0.1% decreased and closed at 7194.
China said that the import duty on US $ 200 million of Chinese goods. Will be an unspecified response after the increase of 10% to 25% in comparison to Friday. After the breakdown of trade talks later, US officials said they were preparing to expand the charges. Covering more than $ 300 billion in other goods covering China.
In New York, Wall Street opened on huge losses, with the future contract of Dow Jones Industrial Average down 1.2% below at 25,656 For the S & P 500 the future fell by 1.3% to 2,849.
By late Monday night, Beijing did not indicate what it would do, adding uncertainty in the deadlock.
The London Capital Group’s research chief Jasper Lawler said, “The US has put the possibility of reaching the agreement after negotiations with the two sides after nearly one year of negotiations by threatening China to raise fees and impose retaliation. ”
Shanghai Composite Index fell 1.2% to 2,903.71. Japan’s Nikkei 225 index moved up 0.7% to 21,191.28 and Australia’s S & P ASX dropped 0.22% to 0.22% to 6,297.60. South Korea’s Kospee dropped 1.4% to 2,079.01, while the Sensex in India fell by 0.1% to 37,420.03. The Hong Kong market was closed for a holiday. The shares also fell in Taiwan and South East Asia.
For last week’s trade talks, Vice Premier Liu Hei, chief premier Liu Hei, said before leaving Washington on Friday that Beijing would not compromise on matters of the theory and the tariff on the Chinese tariff on US exports as a condition for an agreement Should be raised.
But Liu, while reducing the level of stress, said that China could face challenges arising from trade disputes.
Nevertheless, the tariff war is overtaking Chinese manufacturers and there is an additional pull on development for this region.
Business tensions have prompted investors to take shelter in traditional safe places, including the Japanese Yen. Dollar slipped from 109.96 yen to 109.65 Japanese yen on Friday. Euro $ 1.1231 to $ 1.1238.
Oil prices have increased after two oil tankers of Saudi Arabia sacked the Gulf of Oman near the coast of United Arab Emirates. The state said that no casualty or oil leak was done due to the unspecified act of subversion, but the attack on Sunday expressed concern about the security of the oil supply. American benchmark crude oil added 84 cents to $ 62.50 per barrel in electronic trading on New York Mercantile Exchange. At the international level, Brent Crude jumped $ 1.14 to $ 71.76 a barrel.