Risk sentiment dampened as hopes of a possible near-term respite from the market-bruising U.S.-China trade war diminished after comments from President Donald Trump and Commerce Secretary Wilbur Ross. U.S. President Donald Trump on Tuesday suggested a trade deal with China might have to wait until after the U.S. presidential election in November 2020. Separately, Ross confirmed that new tariffs on Chinese imports would take effect on Dec. 15 as scheduled, unless substantial progress was made.
Washington and Beijing have been haggling over a phase one trade deal over the past several weeks, an effort seen by many investors as an attempt at a sort-of truce until the globe's two largest economies can agree on a longer-term relationship. Both sides have introduced tariffs on billions of dollars' worth of imports as the disagreement escalated over the last year; additional U.S. tariffs are set to take effect on Dec. 15.
The setback in the Chinese trade negotiations, coupled with tariffs on the French with regard to the digital tax and tariffs on Brazil and Argentina for steel, disappointing the markets.
CURRENCY NEWS: China's yuan eased against the dollar after the People's Bank of China (PBOC) set softer mid-point fixing and as U.S. President Donald Trump once again threatened to extend the 17-month long trade war with China, raising the spectre of fresh tariffs on Chinese goods within weeks. Prior to the open, the People's Bank of China set the midpoint rate CNY=PBOC at 7.0382 per dollar prior, 0.23% softer than the previous fix of 7.0223. In the spot market, onshore yuan CNY=CFXS opened at 7.0420 per dollar and was changing hands at 7.0691 at midday, 0.11% down than the previous late session close at 7.061.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
