China’s vice premier to visit the US on May 9 for trade talks
On Tuesday, Asian markets managed to recover slightly with the Shanghai Composite Index and Shenzhen Composite Index rising higher by 0.78% and 1.58%, respectively, by midday.
China’s vice premier Liu He has confirmed his attendance to join the Chinese delegation that will be visiting the United States (US) for trade talks on May 9 to 10, as China attempts to get the talks back on track and to work around the latest tariff threats the US has said it would hike.
Mr Liu’s attendance on Thursday will comfort the markets as market watchers were expecting a higher probability for the US to hike the tariffs on US$200 billion worth of Chinese goods from 10% to 25% if the vice premier did not join the delegation.
The US is planning to increase the tariffs at 12.01am on May 10, US trade representative Robert Lighthizer had told reporters in Washington on Monday. But US treasury secretary Steven Mnuchin said in a CNBC report that there is a possibility for the US to reconsider hiking the duties if the trade talks get back on track.
On Sunday, Mr Trump tweeted that the current tariffs on US$200 billion worth of Chinese goods will rise to 25% on Friday, from the previous 10%. The US president also threatened to tax an additional US$325 billion worth of untaxed goods at 25%, as he deemed the trade talks to be progressing ‘too slowly’.
Mr Trump’s tweet response arrived after Mr Lighthizer updated him with details that China was pulling back from previous commitments.
Asian and US markets met with a turbulent trading day on Monday after Mr Trump’s tariff threat.
On Monday noon, the Shanghai Composite Index and Shenzhen Composite Index plunged by 5% and 7%, respectively, but the indices managed to recover slightly by Tuesday noon, rising higher by 0.78% and 1.58%.
Markets reacted positively on Tuesday in hopes that China will push ahead with the US trade talks and were also relieved that China had not reacted to US’ scares with retaliatory tariff threats.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
