US tariffs move on China hits stocks

WORLD shares retreated yesterday after US President Donald Trump announced new tariffs that sparked fears of a trade war between the US and China, while oil prices plummeted 3 percent over signs that supply may soon rise.

Trump announced hefty tariffs on $50 billion (about R664.95bn) of Chinese imports yesterday, with Beijing threatening to respond in kind, in a move that could ignite a trade war between the world’s two biggest economies.

Trump unveiled a 25 percent tariff on a list of strategically important imports from China, promising further measures if Beijing struck back.

MSCI’s gauge of stocks across the globe shed 0.59 percent, while the pan-European FTSEurofirst 300 index lost 0.76 percent.

Emerging market stocks were hit particularly hard, tumbling 1.2 percent, a move maybe attributable as much to a strong dollar as to trade tensions.

Trump’s decision on tariffs comes a day after stock markets had rallied on the European Central Bank’s decision to hold off on raising rates. – Reuters