Trade war unsettles stocks in US, China
News & Trends •
peter donisanu an investment strategy analyst for the wells fargo investment institute said the risk of a damaging trade war is still low because the trump administration is targeting specific goods that are not central to chinas economy1 the trade war ignited by u.s president donald trump against china has caused a dip in the stock markets of both countries1 the planned sanctions include tariffs on 60 billion worth of chinese imports as well as restrictions on chinese investments1 mr trump said he is taking those steps in response to theft of american technology but the chinese government was quick to confirm it will defend itself1 investors are worried that trade tensions would hurt us companies and harm the world economy1 on thursday they fled stocks and bought bonds which sent bond prices higher and yields lower1 with interest rates falling banks took some of the worst losses. technology and industrial companies basic materials makers and healthcare companies also fell sharply1 the dow jones industrial average dropped more than 700 points as investors worried that trade tensions between the worlds largest economies would escalate reports on friday1 that could change if it puts tariffs on products like electronics or appliances imported from china1 also reports that war between the worlds two largest economies jolted chinas markets on friday with the countrys main stock indexes tumbling the most in six weeks while bond yields fell as investors rushed into less risky assets1 but in contrast to stock market ructions the countrys currency markets remained quiet with analysts expecting that any chinese response to u.s. trade actions is unlikely to include changes in its foreign exchange policy1 china shares fell sharply after beijing unveiled plans for tariffs on up to 3 billion of u.s. imports in retaliation to u.s. duties on chinese steel and aluminium products went into effect on friday1 china urged the united states to pull back from the brink while its embassy in washington vowed beijing would fight to the end in any trade war with the united states1 the shanghai composite index closed down 3.6 percent at 3152.76 points its lowest close since feb 91 chinas blue-chip csi300 index was down 2.9 percent at 3891.47 its lowest close since feb. 121