The US shares are shaken, the dollar jumped and Hong Kong shares slipped from the highest two months on Tuesday when the US and China made the financial market restless with the Tit-For-Tat tariff which increased the scourge of a broader and destructive trade conflict.
“The story of the trade war (the) remains alive and healthy and this has further to play,” said Chief Economist Shane Oliver at AMP in Sydney when the price slipped on the headlines.
S&P 500 Futures, which bounced relieved that Mexico and Canada cut the agreement to postpone the hit of the US tariff, swinging to a loss of 0.2%. European Futures fell 0.1% and Euro sank under $ 1.02 in the nerves dragged by Europe.
New sales pressure hit Canadian dollars and Mexican Peso.
The last dollar index rose 0.2% at 108.78.
Hang Hang Seng from Hong Kong, who has scored the highest 2025 in the hope that China will also negotiate with US President Donald Trump, peeling the profit to trade around 2% higher.
An additional 10% US tariff on Chinese exports came into force on 0501 GMT, and a few minutes later Beijing announced that he was investigating Google and imposed tariffs on oil imports, coal, gas, cars, and US agricultural equipment from 10 February.
“The situation is still very liquid. I anticipate increasing uncertainty, the power of the dollar and USDCNH above 7.40, “said Jeff Ng, Head of Asian Macro Strategy at SMBC in Singapore.
Yuan off the coast rolled to 7,3236 per dollar after the US tariff came into force and the more liquid Australian dollar, often seen as a proxy for Yuan, down 0.7% to $ 0.6180.
The Chinese market remains closed for the Chinese New Year holiday, with investors focused on where China improves currency trading bands on Wednesday morning for instructions on negotiation attitudes.
Press Secretary Trump said he would speak with Chinese President Xi Jinping in the next few days, but unlike North Americans, it was unclear where they would find similarities.
“This is a completely different story because (China) is an economic and political rival,” said Naka Matsuzawa, head of macro strategists in Nomura in Tokyo.
“Unless China makes a big concession economically, I really don’t think Trump will stop this tariff.”
Uncertainty is released
Trump’s shifting trading policy has made a wild start up to a week decorated with large company income. Canadian dollars scored the biggest one day from the beginning of Pandemi on Monday and Cryptocurrency has been fulfilled.
Bitcoin is under sales pressure and drops 3% to $ 98,750. Investor discomfort has safe gold near the highest record and bonds are below a little pressure, with a 10 -year benchmark Treasury produces 3 bps to 4.57%.
“Increasing policy uncertainty will be difficult to put into bottles,” said US Economist Chief JP Morgan, Michael Feroli.
“For the Fed, the development of weekends is likely to strengthen their tendency to sit on the sidelines and remain under as many radar as possible.”
UBS Group defeated estimates with the fourth quarter profit and announced a repurchase. BNP Paribas (BNPP.SA) also defeated the estimated income but reduced the profit target this year.
Google reports after the US market is closed on Tuesday with supervision of large -scale AI expenses.
Oil prices, which have jumped on Monday, fell and Brent Futures touched the lowest one month $ 75.03 per barrel.
Source: Reuters
