Asian markets are in negative territory in early trading on Wednesday in effect to the President Donald Trump statement that, he said a trade deal with China may not come, until after presidential election 2020.
Trump said on Tuesday, December 3, 2019, at a news conference in London, where he was attending a NATO summit that “I think it’s better to wait until after the election, if you want to know the truth about the trade deal. But I’m not going to say that, I just think that”.
U.S. stocks plummeted
The U.S. stocks plummeted after the remark, although the three major indexes closed above the session lows. The ongoing trade tensions could escalate further after Congress in late Tuesday overwhelmingly approved a bill condemning the China’s mass detention of ethnic Muslims, and also called for sanctions against some officials responsible. China also reacted harshly in last week to a bill the Trump signed last week supporting by Hong Kong’s pro-democracy protesters.
Wall Street Fell
The benchmark S&P 500 index fell 0.7% to 3,093.20 on Wall Street and the Dow Jones Industrial Average plunged 1% to 27,502.81. The Nasdaq index slumped 0.6% to 8,520.64.
Trump Proposed Tariffs on Tech Giants
Trump proposed tariffs on $2.4 billion in the French products for the global tech giants, in retaliation for a tax includes Alphabet’s (GOOGL), Amazon (AMZN) and Facebook (FB). That also follows a threat on Monday to raise the tariffs on steel and aluminum from Brazil and Argentina.
Australia also disappointed investors on Wednesday by reporting third-quarter economic growth dropped to 0.4% over the previous quarter from 0.6% in three months ending in June. Australian central bank had also described economy as experiencing a “gentle upturn.”
Major Index Moves
Benchmark U.S. crude surged 40 cents to $56.50 per barrel in electronic trading on New York Mercantile Exchange. On Tuesday, the contract gained 14 cents to close at $56.10. The Brent crude used to price international oils, rose 48 cents to $61.30 per barrel in London. It had also lost 10 cents the previous session to $60.82. US dollar declined to 108.59 yen from Tuesday’s 108.63 yen.