Markets In Asia Down Over Trump's Comments And House Bill

Friday, 06 Dec, 2019

Positive signals from the U.S. & China trade and tariff situation might dent demand for the safe haven asset, gold.

Beijing said last month the us side agreed to roll back some tariffs, but Trump dismissed that.

After weeks of broad optimism - and White House claims - that the economic superpowers were close to a partial agreement, the president said he could be happy to wait until after next year's vote.

In currencies, the pound was up as investors seemed to bet that the Conservative Party would win the British election, which some think would make it more likely that a Brexit deal might be clinched soon.

"But these things take time, and perhaps traders are just trying to work up their risk-appetite again, after having been ripped in the guts by the week's trade-war shenanigans".

The market has swung sharply for months on every hint of progress about talks between the world's largest economies, and the latest flip-flop followed a report from Bloomberg News saying USA negotiators expect a "Phase 1" trade agreement to be completed before us tariffs are set to rise on Chinese products December 15.

"A China trade deal is dependent on one thing - do I want to make it", Trump told reporters in London, where he is attending the North Atlantic Treaty Organisation summit.

Gold prices seesawed in the last two days on flipping news about the US-China trade deal, Mr. Patel added. Investors had hoped for at least enough progress to stave off new USA tariffs on Chinese goods, including smartphones and laptops, scheduled to start December 15.

But Seema Shah, chief strategist at Principal Global Investors, said Trump could not afford a repeat of the stock market's sharp falls in late 2018, when he raised the temperature of the trade war.

She did not elaborate on what the measures might be.

Ross said the regime's retaliation barring USA port calls was "fairly modest".

Another Chinese official said it may take a very long time for Washington and Beijing to reach a deal if they can not find a way to strike while "the iron is hot".

"We've really come to this point where the president has a tariff hammer, and all he sees out there is nails", Lincicome said.

A Wednesday report on the USA job market came in surprisingly weak, which could raise doubts about what's been the strongest part of the economy.

The U.S. embassy in China said it would not speculate on China's possible counter-measures.

The deficit in the trade of goods with China narrowed by 1.1% to $31.3 billion in October and is down 14.6% so far this year. However, she did not say whether the department supported the bill itself.

The regime also announced unspecified sanctions against at least five US -based non-profit organizations, saying that they "played an egregious role in the Hong Kong amendment bill disturbance" and were "much to blame for the chaos in Hong Kong".