Dow futures tumble after US-China trade talks waver
US futures fell on Thursday morning after President Donald Trump blamed china for breaking the deal, leaving investors concerned that the trade war will continue leaving new tariffs to take effect at midnight.
Dow futures fell by more than 180 points on Thursday morning, after US President Donald Trump said that China ‘broke the deal’ at a rally on Wednesday night, leaving investors worried that new tariffs will come into effect before a trade agreement between the two countries is reached.
US stock futures fell following the news, with the Dow Jones Industrial Average, S&P 500 and Nasdaq all expected to open lower on Thursday. So far this week, the Dow has fallen more than 540 points and the S&P 500 has lost more than 2% of its value US-China trade tensions worsen.
Trump threatens more tariffs on China
At a rally in Florida on Wednesday evening, Trump reiterated he would raise tariffs on even more Chinese goods and even blamed the country’s officials for a break down in the trade negotiations.
‘By the way, you see the tariffs we're doing? Because they broke the deal. They broke the deal,’ Trump said. ‘So they're flying in, the vice premier tomorrow is flying in — good man — but they broke the deal. They can't do that, so they'll be paying.’
China ready to retaliate
In response to Trump’s tough talk, Chinese officials said that they would retaliate in kind if the US opted to impose higher tariffs on their exports.
However, the Chinese delegation is will remain in Washington for the remainder of the week offering a glimmer of hope that a trade agreement will be reached and bring an end to the US-China trade dispute.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Be ready to act on ECB opportunities
Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in September 2020.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
