This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.nytimes.com/2018/04/04/business/stock-markets-trade-war.html

The article has changed 7 times. There is an RSS feed of changes available.

Version 3 Version 4
Stocks Wobble on Wall Street as Trade Fight Grows Between U.S. and China Stocks Rise on Wall Street Even as Trade Fight Between U.S. and China Grows
(about 2 hours later)
Stocks sank again early Wednesday amid an escalating trade dispute between the United States and China that investors fear could derail the current economic upturn, but managed to regain some ground by midday. Stocks rose on Wednesday in a roller-coaster trading session during which investors were whipsawed by updates on an escalating trade dispute between the United States and China.
Washington and Beijing have unveiled a series of tariffs and counter-tarrifs in recent days, with China saying Wednesday that it planned to impose some $50 billion in import duties on soybeans, cars, chemicals and other goods from the United States. The Standard & Poor’s 500-stock index finished up 1.2 percent, an upbeat end to a session that started with a steep, nearly 1.5 percent decline driven by jitters of worsening trade tensions between the world’s two largest economies.
The moves followed President Trump’s recent decision to place tariffs on steel, aluminum, aircraft parts, flat-screen televisions and other products from China, which Mr. Trump has long accused of engaging in unfair trade practices. Stocks reversed course after Larry Kudlow, President Trump’s newly installed director of the National Economic Council, sought to play down the risks of an outright trade war in late-morning comments to reporters.
Investors had initially seemed willing to discount the possibility of a trade war, perhaps in the belief that the White House’s protectionist talk would fade amid negotiations through traditional channels. But the tit-for-tat tariff announcements from the United States and China may be stripping some of that confidence from investors. Washington and Beijing have announced a series of tariffs and counter-tarrifs in recent days, with China saying on Wednesday that it planned to impose some $50 billion in import duties on soybeans, cars, chemicals and other goods from the United States.
The moves came in response to Mr. Trump’s recent decision to place tariffs on steel, aluminum, aircraft parts, flat-screen televisions and other products from China, which he has long accused of engaging in unfair trade practices.
Investors initially seemed willing to discount the possibility of a trade war, perhaps in the belief that the Trump administration’s protectionist talk would fade amid negotiations through traditional channels. But the tit-for-tat tariffs rolled out by the United States and China may be stripping away some of that confidence.
“The scale and speed of Mr. Trump’s actions would have been difficult to predict at the start of the year,” analysts at Deutsche Bank said in a note to clients on Wednesday before American markets opened. “The growth outlook is more uncertain than it was.”“The scale and speed of Mr. Trump’s actions would have been difficult to predict at the start of the year,” analysts at Deutsche Bank said in a note to clients on Wednesday before American markets opened. “The growth outlook is more uncertain than it was.”
The latest volley between the United States and China has mostly involved advanced manufacturing technologies, a dispute that parallels the countries’ fight over steel and aluminum. The overall value of the duties at issue is small given that total trade between the two countries amounts to around $650 billion a year. But economists and investors say the tensions could ratchet up quickly, and that the tariffs could become more punishing.The latest volley between the United States and China has mostly involved advanced manufacturing technologies, a dispute that parallels the countries’ fight over steel and aluminum. The overall value of the duties at issue is small given that total trade between the two countries amounts to around $650 billion a year. But economists and investors say the tensions could ratchet up quickly, and that the tariffs could become more punishing.
The growing tensions have helped fuel a reversal of many of the stock market gains that Mr. Trump has acclaimed since taking office. The Dow Jones industrial average, for example, has recently slipped to its lowest level of the year, despite generally positive economic growth around the world and tax legislation in the United States that has helped bolster corporate profits. The growing tensions have helped erode many of the stock market gains that Mr. Trump had touted since taking office. The Dow Jones industrial average has recently slipped to its lowest level of the year in recent days, despite generally positive economic growth around the world and tax legislation in the United States that has helped bolster corporate profits.
The trade dispute is also rippling into global commodities markets. Cotton prices and soybean prices tumbled more than 2 percent on Wednesday after China announced its tariff plans. The trade dispute is also rippling into global commodities markets. Cotton prices fell 2.9 percent, and soybean prices dropped 2.2 percent on Wednesday.
Analysts at Goldman Sachs said that the imposition of tariffs on soybeans, an agricultural staple in Midwestern swing states, was a sign of worsening friction between Washington and Beijing. Analysts at Goldman Sachs said China’s imposition of tariffs on soybeans, an agricultural staple in Midwestern swing states, was a sign of worsening friction between Washington and Beijing.
“We view the inclusion of soybeans in today’s announcement as political in nature and reflective of the escalation of the trade dispute with the United States,” Goldman Sachs commodities analysts said in a note to clients.“We view the inclusion of soybeans in today’s announcement as political in nature and reflective of the escalation of the trade dispute with the United States,” Goldman Sachs commodities analysts said in a note to clients.
If there was a bright spot in the early sell-off on Wednesday, it was that there was little sign of a rush to the safety of United States Treasury bonds. Instead of falling sharply — a signal of a panicky market — yields on the 10-year Treasury note were stable. Despite the volatility in stock trading, there was little sign of a rush to the safety of United States Treasury bonds. Instead of falling sharply — a signal of a panicky market — yields on 10-year Treasury notes were largely stable, finishing the day at 2.78 percent.