Monday, October 18, 2021

US stocks end mixed after Trump hits back at China over nuclear tests

Image copyright Getty Images Image caption Markets looked on nervously as the trade war between the US and China escalated US stocks finished mixed on Friday, with the S&P 500 eking out a weekly gain and the Nasdaq Composite lagging after President Donald Trump accused Beijing of ramping up economic aggression. Apple shares ended the day down about 1% after reports of production cutbacks. The Dow Jones Industrial

Average edged up 0.2% to 25,244, while the S&P 500 ended down 0.2% at 2,747 and the Nasdaq Composite lost 0.2% to 7,593. It was the S&P 500’s fourth straight weekly rise and it was the first time it closed the week in positive territory since early April. The S&P gained 0.1% and the Nasdaq fell 0.1%. US markets were closed on Thursday for the Labor Day holiday, but officials in Washington maintained high-level trade

talks in Beijing and China reported the two nations were making “substantial progress”. “We seem to be entering an increasingly dangerous phase of this trade war with the US economy very vulnerable,” said UniCredit market strategist Hussein Sayed. “Any impact to the economy through tariffs of trade wars cannot be ruled out… It is too early to say whether the sell-off seen in [Apple’s] stocks or the drop in oil

prices are part of a larger economic slowdown.” In the past few weeks, the Dow has gained 14%, while the S&P 500 has risen by 13%. Talks at the G20 summit in Argentina will take place later this month. Hong Kong markets closed down almost 2% , while indexes in Taiwan and China also fell. London’s FTSE 100 was down 0.3% , while Germany’s DAX and France’s CAC also posted a loss. Doing well The first two sessions of the

week were the best in five months, as markets were relieved that no-one really died at the weekend. But on Thursday, Mr Trump attacked China over its alleged spending in North Korea. He said he was unsatisfied with Beijing’s response to China’s first test of a thermonuclear bomb, which came after a summit meeting last week between Mr Trump and North Korean leader Kim Jong-un. “China has been taking out massive

amounts of money & wealth from the US in totally one-sided trade, but won’t help with North Korea,” he said on Twitter. “Not nice!” Read the full text of President Trump’s tweet here In a subsequent tweet he added: “The United States has been forced to put the interests of our country and its GREAT PEOPLE ahead of China and its terrible Trade Deals. China has been taking out massive amounts of money & wealth from the

US in totally one-sided trade, but won’t help with North Korea. Not nice!” The comments came shortly after the White House said it would impose additional duties on $200bn worth of Chinese goods on or before 22 September . Investors were also “kind of breathing a sigh of relief that the dust is starting to settle,” said Matt Basi, head of sales trading for CMC Markets UK, referring to last week’s stock sell-off. “Now

everyone is taking a step back and reassessing the situation.” Some Asian shares rose after Japan’s Nikkei 225 index jumped 3.8% following the end of the market holiday. Australia’s S&P/ASX 200 gained 2%, while China’s Shanghai Composite climbed 1.6%.

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