Comments
Chinese stocks and the yuan slipped on Friday morning ahead of the implementation of major tariffs that will move the trade row between the United States and China to a new level and cloud the global economic outlook.
At 0215 GMT, the benchmark CSI300 Index was down 0.5 per cent after trading in positive territory earlier. The Shanghai Composite Index also slipped into the red, trading down more than 0.5 per cent near fresh two-year lows. The yuan was trading at 6.6567 per dollar, after ending the late session on Thursday at 6.6371.
“There shouldn't be huge volatility in the market because it's all expected. Investors know what's going to happen and it has already been priced in,” said Li Liuyang, senior foreign exchange analyst at China Merchants Bank in Shanghai, referring to the yuan market. “The market will pay attention to any follow up, whether Trump escalates further, or anything unexpected happens.”
The United States is set to impose tariffs on $34 billion of Chinese imports from 0401 GMT on Friday and has warned it may ultimately target over $500 billion worth of goods, or roughly the total amount the United States imported from China last year.
Beijing has vowed to immediately respond with an equal amount of tariffs of its own against US autos, agricultural and other products, though it is unclear how swiftly the actions could escalate into an all-out trade war.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.