India  

Wall Street recovers but trade war fears simmer

Video Credit: Reuters - Politics - Duration: 02:37s - Published
Wall Street recovers but trade war fears simmer

Wall Street recovers but trade war fears simmer

Stocks bounced-back Tuesday from the worst day of the year but the escalating trade war between the United States and China showed little sign of a major de-escalation.

Conway G.

Gittens reports.

0
shares
ShareTweetSavePostSend
 

A return to relative calm on Wall Street - Tuesday - one day after an escalation in the trade wa between the U.S. and China sent stocks plunging, in their worst sell-off of the year.

The Dow bounced off a two-month low - rising for the first time in six sessions... But trade war tensions are still simmering.

As President Trump tried to downplay fears the two sides are heading for a prolonged showdown, White House economic advisor Larry Kudlow said Washington is in a stronger position than Beijing and that the President will only sign off on the right deal.

He said the two sides will meet again in September.

SOUNDBITE (ENGLISH) LARRY KUDLOW, WHITE HOUSE ECONOMIC ADVISER, SAYING: "China is slashing its prices, that's killing their profits and their companies.

Production and supply chains are moving out of China.

We have elasticity of demand.

Our importers can shop elsewhere outside of China, that's hurting China.

The economic burden is falling vastly more on them than us." China isn't backing down either.

The official newspaper of the Communist Party on Tuesday accused the U.S. of trying to "deliberately destroy international order." The harsh rhetoric out of Beijing - A response to Washington's decision to label China a currency manipulator for the first time since 1994 -sparking fear the trade war was morphing into a more damaging currency war.

Reuters trade correspondent David Lawder: SOUNDBITE (ENGLISH) REUTERS TRADE CORRESPONDENT DAVID LAWDER, SAYING: "I think this is symbolic of the negotiations between the United States and China really devolving and breaking down and the Treasury is sort of weaponizing currency as one, as another avenue to put pressure on China.

It remains to be seen how much pressure this will actually puts on the Chinese.

It is sort of a symbolic label, if you will, the penalties associated with it are not very strong." But sometimes harsh words and actions don't always line up.

Investors took some comfort Tuesday in a decision by China's central bank to fix the yuan to the dollar at a slightly stronger rate than hoped.

One day after it allowed the currency to slide to the lowest since the financial crisis.

Beyond Wall Street, this trade war is also playing out in America's heartland.

Tuesday, President Trump vowed to offer even more aid to farmers after China ordered its companies to stop buying U.S. agricultural goods across the board.




You Might Like

Related news from verified sources

Wall Street set to open lower as trade war stokes fears of recession

Wall Street was set to open lower on Monday, as investors shunned risky bets on fears that a...
Reuters India - Published

Wall Street tumbles as yuan drop heightens U.S.-China trade war fears

Wall Street's major indexes tumbled on Monday, with the benchmark S&P 500 dropping about 3%, as a...
Reuters India - Published

Trump tweetstorm sinks Wall Street as trade war rages on

Wall Street plunged in a broad sell-off on Friday as China and the United States traded their latest...
Reuters India - Published


Tweets about this


Related videos from verified sources

Wall Street mixed ahead of holiday weekend [Video]

Wall Street mixed ahead of holiday weekend

Wall Street showed mixed results Friday as investors were cautious ahead of a holiday weekend. Fred Katayama reports.

Credit: Rumble     Duration: 01:07Published
US Senators Want Amazon To Remove 'Illegal' And 'Deceptive' Products [Video]

US Senators Want Amazon To Remove 'Illegal' And 'Deceptive' Products

Three U.S. senators wrote to Amazon CEO Jeff Bezos, asking him to take action against illegal and unsafe products. They want the company to remove these products from its store and to provide accurate..

Credit: Wochit Business     Duration: 00:31Published
What to watch in the week ahead [Video]

What to watch in the week ahead

Wall Street will key in on the jobs report and speeches by Fed officials in the week ahead.

Credit: Reuters Studio     Duration: 00:56Published