BREAKING NEWS Minnesota National Guard identifies 3 killed in helicopter crash Full Story

Global stocks sink as Trump ups the stakes in China trade fight

Chinese stock markets fell sharply on Tuesday as the trade clash between Washington and Beijing intensified.Th...

Posted: Jun 19, 2018 11:59 AM
Updated: Jun 19, 2018 11:59 AM

Chinese stock markets fell sharply on Tuesday as the trade clash between Washington and Beijing intensified.

The Shanghai Composite closed nearly 4% lower, and Hong Kong's Hang Seng dropped 3%.

The main indexes in several other key regional economies, including Japan and South Korea, were also in negative territory. And US stock futures were under pressure, with the Dow showing a loss of around 1.5%.

The declines came after a series of moves escalating the brewing trade war between the United States and China, the world's two largest economies.

President Donald Trump threatened late Monday in the United States to impose tariffs on an additional $200 billion worth of Chinese goods if Beijing goes through with its promise to retaliate against the US tariffs announced on Friday.

The Chinese Commerce Ministry responded that it would "strike back hard" with "measures that match the US move in quantity and quality."

Related: Trump threatens additional tariffs on $200 billion of Chinese goods

Hong Kong and mainland Chinese markets had been closed Monday for a public holiday, so they were reacting to the flurry of announcements from both sides that came after they had shut Friday afternoon.

The latest threat from Trump darkened an already negative mood in stock markets, according to Stephen Innes, head of Asia-Pacific trading at online futures brokerage Oanda.

"Buckle up, as this could get messy," he warned in a note to clients.

The trade worries have helped push Shanghai stocks to their lowest level in about two years. Investors have also been worried about signs China's huge economy is showing signs of slowing down.

The heaviest hit sectors in the index on Tuesday included telecommunications and technology stocks.

Article Comments

Mason City
Clear
36° wxIcon
Hi: 39° Lo: 30°
Feels Like: 26°
Albert Lea
Clear
39° wxIcon
Hi: 37° Lo: 28°
Feels Like: 31°
Austin
Clear
39° wxIcon
Hi: 38° Lo: 30°
Feels Like: 30°
Charles City
Overcast
36° wxIcon
Hi: 41° Lo: 31°
Feels Like: 26°
Rochester
Clear
35° wxIcon
Hi: 35° Lo: 29°
Feels Like: 23°
Winter is roaring back
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Gift Quality Book and Bake Sale

Image

Reading Center celebrates grand opening of new building

Image

Christmas by the Lake

Image

Making quilts for those in need

Image

John Marshall girls defeat Lakeville South at home

Image

Lourdes boys hockey falls to Mound Westonka

Image

North Iowa Bulls close out the Barn with a win

Image

Weather Sean 12/7

Image

Weather Forecast Sean 12/6

Image

Making medical cannabis more affordable

Community Events