Trade dispute between US and China escalates

European shares opened in positive territory on Friday as the trade dispute between the United States and China escalated with U.S. tariffs on $34 billion in Chinese imports taking effect and China immediately retaliating.

Later Friday, investors were to swing attention to the U.S. monthly jobs report, while keeping an eye on developments in the U.K. as government ministers gather for critical talks on Brexit.

The Stoxx Europe 600 index rose 0.1%, topped by the utilities sector. But the basic materials group, and the oil and gas sector, were losing ground. The pan-European index on Thursday rose 0.4%, for a third consecutive session of gains. For the week, the Stoxx 600 was on course to rise by 0.6%, which would be the first advance after two weeks of losses.

Germany’s DAX 30 index DAX, briefly slipped into the red before edging up by 0.1%. In Paris, the CAC 40 index picked up 0.2%, and in London, the FTSE 100 index turned down nearly 4 points to 7,598.92.

The U.S. implemented tariffs on $34 billion in Chinese imports as of 12:01 a.m. Eastern Time, seen as the start of a trade war between the world’s two biggest economies. As promised, Beijing has responded in kind, with levies on the same value of 545 U.S. goods, including agricultural products, vehicles and aquatic products.

Just ahead of the tariff action, U.S. President Donald Trump threatened to escalate the trade tensions by imposing further duties on more than $500 billion in Chinese imports — roughly the amount of total goods the U.S. imported from China last year.

Japan’s Nikkei share average rose for the first time this week in a positive end to Friday, as investors took heart from gains in Chinese stocks and covered their short positions after early wobbles when Washington’s tariffs on Chinese imports took effect. The Nikkei ended 1.1 percent higher, snapping a fourday losing streak.

This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.