China Trade War Not Ending Soon


The study notes, "despite the fact that more than 70% of us companies consider the suspension of investment in China and moving some or all production overseas, only half of Chinese companies support this approach", reports UKRINFORM. "When it comes to the midterm elections, most people are looking at them optimistically in the sense that usually after midterms the stock market rallies".

Bloomberg reported on Monday that the U.S. is preparing tariffs on all remaining Chinese imports if the talks fail.

At 12 p.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 49.17 points, or 0.34 per cent, at 14,771.08.

With the initial market reaction, Wall Street came under a heavy selling pressure and Nasdaq was last seen down 1.26% on the day while the DJIA and the S&P 500 indexes were losing 0.25% 0.05%, respectively.

New Zealand's two-year swap rate rose 1 basis point to 1.99 per cent; the 10-year swaps were unchanged at 2.78 per cent.

Kyodo/NewscomIf a November meeting between U.S. President Donald Trump and Chinese President Xi Jinping does not produce an agreement, the U.S. could further escalate the two nations' trade war with additional tariffs before the end of the year.

Among industrials, Boeing sank 6.6 percent to $335.59. Microsoft ended down 2.9% at $103.85.

RBI governor may resign, reports say; rupee down
Sources reported that RBI governor Urjit Patel may tender his resignation willingly if government invokes Section 7 of RBI Act. The following development surfaces soon after there were reports of a rift between the RBI Governor and the government. dropped 6.3% to $1,538.88.

The S&P 500, the main benchmark for the US stock market, has fallen 9.9 percent from its latest record high on September 20. There have been no trade talks between the countries since August, when the US imposed the latest round of tariffs. The Nasdaq has plunged 13 percent from its record high reached August 29.

The kiwi traded at 65.46 United States cents from 65.27 U.S. cents at 8am and 65.32 cents yesterday.

The US President said he would like to strike a deal now but that China was not ready. The effects could be especially severe for technology companies, which make many of their products in China, and for industrials.

The trade war between China and the US will not be ending soon.

Although most tech firms fell Monday, open-source software company Red Hat soared 45.4% to $169.63 - reversing its losses from earlier this year - after IBM agreed to buy it for $34 billion in stock.

For most of this year investors have remained hopeful that the US and China would work out their disagreements on trade policy and that numerous tariffs would be reduced or eliminated.