Wall Street falls as US-China trade tensions rise

Donald Trump Xi Jinping

Report Trump Planning to Hit Remaining $267 Billion of Chinese Imports with Tariffs if Xi Talks Fail The Associated Press 29 Oct 2018

The US is preparing to announce by early December tariffs on all remaining Chinese imports if talks between Trump and Xi fail, according to three people cited by Bloomberg.

Already, about $250 billion of Chinese goods imported to the USA are subject to tariffs.

"I think that we will make a great deal with China and it has to be great, because they've drained our country", Trump told FOX News Channel's "The Ingraham Angle" on Monday.

Among industrials, Boeing sank 6.6% to $335.59.

There were major swings on Wall Street yesterday, with the Dow moving in a range of 900 points, in response to a report that US President Donald Trump is planning to impose a tariff on all Chinese goods if he does not receive a satisfactory trade offer from President Xi Jinping. "We are seriously concerned about this", Chinese foreign ministry spokesperson Lu Kang said in a statement posted on the ministry's website.

ASIA'S DAY: Japan's Nikkei 225 index jumped 1.5 percent to 21,457.29 after official data showed that the unemployment rate eased to 2.3 percent in September, from 2.4 percent a month earlier. Alphabet, Google's parent company, lost 4.5 percent to $1,034.73.Amazon.com dropped another 6.3 percent to $1,538.88.

Former England manager Glenn Hoddle is rushed to hospital
Former England and Tottenham footballer Glenn Hoddle has been taken to hospital according to BT Sport presenter Jake Humphreys. As a player, Hoddle won the FA Cup and Uefa Cup with Tottenham and also had spells with Monaco , Swindon and Chelsea.

The Russell 2000 index of smaller-company stocks slipped 6.51 points, or 0.4 percent, to 1,447.31.

Panic cooled somewhat in the last 15 minutes of trading as the Dow pared losses to end the day down 245.39 points, or 1 percent, at 24,442.92 while the S&P 500 shed 0.7 percent.

The final list of goods would largely hit consumer products and capital goods, which the Trump administration has so far spared, and likely would push up prices for many United States businesses and consumers. China hiked tariffs on $110 billion in imports from the U.S.

ANALYST'S TAKE: With new restrictions on a Chinese semiconductor maker, the "U.S. has escalated its trade war with China in an unexpected way", Chang Wei Liang of Mizuho Bank said in a commentary.

The pan-European STOXX 600 index rose 0.01 percent. Italy's FTSE MIB index rose 1.9 percent after Standard & Poor's did not downgrade the company's credit rating. Stocks climbed earlier this month after Bolsonaro led the previous round of voting, as investors preferred him to leftist parties. The contract dropped 55 cents to settle at $67.04 a barrel in NY. Brent crude, used to price global oils, fell 0.4% to $77.34 a barrel in London. Most of those imports are now being charged a 10 percent tariff, which is set to increase to 25 percent at the end of the year. Copper was little changed at $2.74 a pound.The dollar rose to 112.35 yen from 111.85 yen.

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