NZ dollar lifted as Donald Trump predicts great deal with China

Marcus Newton
November 2, 2018

If the discussions fail, the Trump administration will apply a new round of tariffs targeting the rest of the US' imports from China, worth roughly US$257bn, sources familiar with the matter told Bloomberg.

The US has already levied tariffs of 25 percent on $50 billion worth of Chinese goods, mainly industrial products, plus a tariff of 10 percent on another $200 billion worth of imports imposed in September that is set to rise to 25 percent at the start of next year.

According to a Bloomberg report citing anonymous sources, no decisions have been made, but a new list of USA tariffs was being prepared in case the Trump-Xi meeting does not yield progress.

The Japanese yen fell 0.4 percent to 112.34 per dollar, the biggest dip in nearly two weeks.

China on Saturday denounced Donald Trump's accusation that Beijing is stalling efforts to disarm North Korea as "irresponsible", after the USA president said an upcoming trip to Pyongyang by his top envoy had been cancelled due to lack of progress on the issue.

Referring to the 500 billion dollars which Trump claimed China annually got from the United States, he pledged that Washington will win an economic confrontation with Beijing.

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The Nasdaq 100 lost 2 percent and the Dow Jones Industrial Average sank 1 percent. Alphabet, Google's parent company, lost 4.5 percent to $1,034.73. Figures from the previous year, the most recent data available, showed 44 per cent of Chinese respondents held unfavourable views of the US. He can refuse to go along with Trump's demands-allowing him to save face domestically by standing up to America-or he can offer a new deal, giving Trump more fodder for tweets that humiliate China's attempt to work with the end the trade war. The Nasdaq has plunged 13 percent from its record high reached August 29.For most of this year investors have remained hopeful that the USA and China would work out their disagreements on trade policy and that numerous tariffs would be reduced or eliminated.

The ambassador made no specific remarks about the current trade stand-off between the U.S. and China. The euro fell to $1.1354 from $1.1372. After Cooper Tire & Rubber reported a bigger third-quarter profit than analysts expected, its stock surged 21.4% to $30.89.

The pan-European STOXX 600 index rose 0.01 percent.

Bond prices slipped. The yield on the 10-year Treasury note rose to 3.08% from 3.07%.

Brent crude futures fell $1.34 to $76.00 a barrel, a 1.7-per-cent drop.

USA crude fell 1.06 percent to $66.33 per barrel and Brent was last at $76.30, down 1.34 percent. Silver fell 1.8% to $14.44 an ounce. Copper was little changed at $2.74 a pound.The dollar rose to 112.35 yen from 111.85 yen.

Other reports by MaliBehiribAe

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