Dow Jones falls 245 due to new China tariff fears

Dow Jones falls 245 due to new China tariff fears

Dow Jones falls 245 due to new China tariff fears

The US could impose tariffs on all Chinese imports that are still not taxed, Bloomberg reported, with sources saying preparations are underway in case talks between US president Donald Trump and Chinese premier Xi Jinping, scheduled for next month, fail to yield progress on the ongoing trade war. But he also said he had billions of dollars worth of new tariffs ready to be imposed if a deal was not possible.

The study notes, "despite the fact that more than 70% of us companies consider the suspension of investment in China and moving some or all production overseas, only half of Chinese companies support this approach", reports UKRINFORM.

China and the United States are now engaged in a trade row which was triggered by the USA slapping 25- and 10-percent tariffs on steel and aluminum imports, respectively, from China in April. But Germany's DAX fell 0.2 percent to 11,316 and the CAC 40 in France sank 0.2 percent to 4,980 after weak eurozone growth figures.

China on Saturday denounced Donald Trump's accusation that Beijing is stalling efforts to disarm North Korea as "irresponsible", after the United States president said an upcoming trip to Pyongyang by his top envoy had been cancelled due to lack of progress on the issue.

He said China had been really hurting the U.S. economically.

The response on Wall Street was to send the Dow plunging after it had opened by more than 300 points up.

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At 12 p.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 49.17 points, or 0.34 per cent, at 14,771.08. The S&P 500 index swung by almost 4 percent from its high to the low in the trading session, with tech stocks and Boeing particularly hard hit. They've been taken out an average of USD500 billion a year for many years. Previous rounds of USA tariffs have taken at least two months to impose once a list of products was announced, allowing for public comments to be aired.

The S&P 500, the main benchmark for the USA stock market, has fallen 9.9 percent from its latest record high on September 20. The reason the yuan is being dumped now is that investors are concerned about a trade war between America and China. Italy's FTSE MIB index rose 1.9 percent after Standard & Poor's did not downgrade the company's credit rating.

Brazil's Bovespa rose in morning trading after far-right politician Jair Bolsonaro was elected president, but it later turned lower and lost 2.2 percent.

In Europe, Britain's FTSE 100 added 0.2 percent to 7,042. Stocks climbed earlier this month after Bolsonaro led the previous round of voting, as investors preferred him to leftist parties.

The Russell 2000 is down 58.20 points, or 3.8 percent.

USA crude fell 1.28 percent to $66.18 per barrel and Brent was last at $76.07, down 1.64 percent. Brent crude, used to price worldwide oils, fell 0.4% to $77.34 a barrel in London. Copper was little changed at $2.74 a pound.The dollar rose to 112.35 yen from 111.85 yen.

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