China tries to defuse trade pressure, says world benefits

China Says Its Trade Practices Benefit World

Beijing has announced plans to hike tariffs on US soybeans, for which China is the biggest export market, in response to Trump's threat of import duty increases on Chinese goods.

People walk past a bank electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Thursday, June 28, 2018.

The white paper defends China's policy. US gold futures GCcv1 fell 0.34 percent to $1,255.60 an ounce.

The benchmark CSI300 Index .CSI300 and the Shanghai Composite Index .SSEC both gave up weak midday gains, deepening the losses that pushed them into bear-market territory on Tuesday and Wednesday.

"After a lot of saber-rattling, we are seeing Shanghai suffering a lot more than Wall Street, so clearly the first round (of trade war) has been won by America".

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.24 percent lower, while Japan's Nikkei .N225 lost 0.31 percent. The dollar index.DXY, which measures the greenback against a basket of six other currencies, was up 0.63 percent at 95.249, on pace for its second straight day of gains.

Spot gold XAU= dropped 0.4 percent to $1,253.70 an ounce.

China defended its trade practices Thursday as being beneficial to the world as it tries to ease pressure from the United States and Europe to abandon what they consider to be Beijing's protectionist policies. China and the European Union agreed Monday to launch a group that will, among other things, try to preserve support for global trade amid USA threats of import controls.

The report highlights the clash between Beijing's insistence it has honored market-opening promises made when it joined the World Trade Organization in 2001 and arguments by Washington, Europe and others that Beijing improperly hampers access to emerging industries and steals or pressures foreign companies to hand over technology.

While the prospect of trade protectionism and tit-for-tat tariffs are raising serious fears for the world economy, the growth and inflation outlook is being further complicated by oil prices rising back above $75 per barrel, due to Washington pressuring its allies to halt Iranian imports. He urged Congress to strengthen existing laws that apply to all foreign countries instead.

Many investors still caution against reading too much into the fallout from the trade tensions, citing robust global growth and hopes of an ultimately pragmatic approach by leaders on the trade issue. Beijing responded to Washington's first round of hikes on USD34 billion of imports by raising duties on USA soybeans, whiskey and other products.

Safe-haven bonds also gained from the turmoil, with 10-year Treasury yields slipping 3.5 basis points to around 2.84 percent, a near-one month low. Brent crude, used to price worldwide oils, rose 18 cents to $77.80 in London. Trump, who withdrew the US from an Iran nuclear deal in May, is reportedly pushing foreign nations to cut their oil imports from the country to zero by November, when sanctions on Iran's energy sector will kick in again.

Currencies: The dollar fell to 109.92 yen from 110.03 yen. The euro ticked up to $1.1584 from $1.1557.

Related:

  • Trump narrows down Supreme Court Justice replacements

    Trump narrows down Supreme Court Justice replacements

    It's widely expected the next appointee could shift the current balance of Supreme Court to a more conservative-learning bench. In the Trump administration, Kavanaugh's biggest booster is White House counsel Don McGahn.
    Melania Returns To U.S.-Mexico Border Amid Separation Outcry

    Melania Returns To U.S.-Mexico Border Amid Separation Outcry

    Trump was not welcome in Phoenix and accused the first lady of having made a mockery of the situation with her jacket last week . But the states say his order is riddled with caveats and fails to reunite parents and children who have already been torn apart.
    Iran Reopens Nuclear Uranium Enrichment Plant

    Iran Reopens Nuclear Uranium Enrichment Plant

    They say the USA sanctions would inevitably affect the country's economy, posing a challenge for Rouhani's administration. Secretary of State Mike Pompeo .
  • USA  crude oil inventories decrease further last week: API

    USA crude oil inventories decrease further last week: API

    The shrinking availability of finance from worldwide banks could enlarge the disruptions in Iranian oil exports as well. Russian company Lukoil has already confirmed it has put its Iran plans on hold ahead of the sanctions deadline.
    Amazon wants you to start a business to deliver its packages

    Amazon wants you to start a business to deliver its packages

    Start-up costs for a DSP business are as low as $10,000, and military veterans can apply to have their start-up costs reimbursed. According to Amazon , there's real potential here for individuals that are looking to make money with a delivery business.
    Families Belong Together march: Celebs, politicians, activists unite in LA

    Families Belong Together march: Celebs, politicians, activists unite in LA

    But the family separation policy has been a watershed for attracting a broader spectrum of demonstrators, she said. Some of the children, for example, have been sent to foster care agencies in New York City.
  • Lost to Germany in South Korea and was eliminated from the tournament

    Lost to Germany in South Korea and was eliminated from the tournament

    Ozil has been heavily criticised throughout the tournament and was dropped for the 2-1 win over Sweden last week . The results on the afternoon in question saw Mexico lose to Sweden 0-3 and South Korea surprising Germany 2-0 .
    US Supreme Court judge to retire

    US Supreme Court judge to retire

    He cast the deciding votes on gay marriage and gun ownership, prayer and privacy, campaign finance and capital punishment. Indeed, a similar scenario played out in 2016 and, two years later, the strategy is proving successful for Republicans.
    Messi, Ronaldo bow out in dramatic knockout openers

    Messi, Ronaldo bow out in dramatic knockout openers

    He was part of the Portugal team that made the semi-finals in 2006, and now has faced round of 16 exits in both 2010 and 2018. The last time this happened was at the Mexico World Cup in 1986, when Belgium beat Soviet Union 4-3 after extra time.
  • DeAndre Jordan to opt out of deal, become free agent

    DeAndre Jordan to opt out of deal, become free agent

    This is an obvious indication that he has played his last game for the Clippers and will be on a new team next year. He will never be great in that area, but making himself less of a liability is a positive sign for his future.
    Protesters, lawmaker arrested in U.S. Senate building over immigration

    Protesters, lawmaker arrested in U.S. Senate building over immigration

    County for Trump will be broadcasting our counter-protest live on Facebook and YouTube", organizer Arthur Schaper said. Most of the children separated from their families before the order was signed have not yet been reunited with them.
    Goodbye, Geoffrey: Toys R Us closing its last stores

    Goodbye, Geoffrey: Toys R Us closing its last stores

    It was only a few months later in January 2018 that the chain announced it would close 180 stores thanks to its $5 billion debt. We made a decision to visit the icon toy store one last time before it closed its doors forever.

Comments

Other news