Published: Thu, November 01, 2018
Business | By Eloise Houston

U.S. Futures Hold Gains as Europe Stocks Struggle: Markets Wrap

U.S. Futures Hold Gains as Europe Stocks Struggle: Markets Wrap

The US could impose tariffs on all Chinese imports that are still not taxed, Bloomberg reported, with sources saying preparations are underway in case talks between US president Donald Trump and Chinese premier Xi Jinping, scheduled for next month, fail to yield progress on the ongoing trade war.

The United States has already imposed tariffs on $250 billion worth of Chinese goods, and China has responded with retaliatory duties on $110 billion worth of USA goods.

If the new duties are imposed, all imports from China would be subject to United States tariffs. Facebook stock was also down 2 percent, Amazon fell 6 percent, Netflix dropped 5 percent and Google's parent company Alphabet fell 4.5 percent.

October has been a horror show for U.S. equities with major indices down in correction territory of over 10 percent from recent highs.

The Dow is down 7.7 percent the S&P 500 has fallen 9.4 percent and the Nasdaq has lost 12 percent for October.

Mr Trump and Mr Xi could meet if, as expected, they both attend next month's G20 summit in Buenos Aires.

"The Stock Market is up massively since the election, but is now taking a little pause - people want to see what happens with the Midterms".

Among industrials, Boeing sank 6.6% to $335.59.

The Nasdaq is up 146.90 points, or 2.1 percent. Its stock traded above $2,000 a share in early September and has dived 24.5% since then. Experts say it was hurt by one-off factors like new emissions standards for cars, so growth is likely to pick up again.

The Dow is down 276.30 points, or 1.1 percent.

Indeed, mixed messages have become a recurring feature of the administration's approach to China during the trade war, including from the president, who has on a number of occasions made discouraging remarks about the prospect of resolution through dialogue, including talks proposed at the invitation of the US Treasury.

The report of a further escalation in the trade row between the U.S. and China unsettled markets again. "I have $267 billion waiting to go if we can't make a deal", he added.

"More than 70 percent of American firms operating in the South of China, consider the suspension of further investment in the country and move some or all of their production facilities to other countries, because trade war hits profits", reports Reuters.

Like this: