China tries to defuse trade pressure, says world benefits

China tries to defuse trade pressure, says world benefits

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.

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