The Sino-US relations become tense since Trump suddenly announced that it will impose an extra 10% tariff on the US$300 billion Chinese exports to the US from September 1. The US also claimed it may increase the tariff to more than 25%. The news dragged down the US stocks, US dollars, US bond yields and oil price. The offshore renminbi also hit a nine-month low. The Chinese Ministry of Commerce previously said that whether China and the United States can reach an agreement, it depends on the sincerity of the US to resolve China’s core concerns.
- The Dow Jones Industrial Average closed at 26,583.42 points, down 280.85 points or 1.05%. The Standard & Poor’s 500 Index closed at 2,953.56 points, down 26.82 points or 0.90%. The Nasdaq index closed at 8,111.12 points, down 64.30 points or 0.79%.
- US President Trump suddenly escalated the trade war with China and announced that he would impose an extra 10% tariff on the $300 billion Chinese exports to the US from September 1. He threatened that the tariff rate may increase to 25% if the Sino-US negotiations continue to be deadlocked.
- The Sino-US trade war is escalated and the global manufacturing industry is in a downturn. The US ISM manufacturing index fell to a three-year low, dragged down by slow production and unstable export markets.
- The UK’s FTSE 100 index closed at 7,584.87 points, down 1.91 points or 0.03%. The Frankfurt DAX index closed at 12,253.15 points, up 64.11 points or 0.53%. The French CAC40 index closed at 5,557.41 points, up 38.51 points or 0.70%.
- The Bank of England keeps interest rates unchanged, and the Bank’s latest outlook still assumes that the UK can quit EU smoothly.
- According to informed source, the European Central Bank is preparing to lower the deposit rate in September.
- Japan’s Nikkei 225 index closed at 21,540.99 points, up 19.46 points or 0.09%. The yen closed at 108.990 against the US dollar, down 0.395%.
- According to Japan, it plans to remove South Korea from the list of trusted export destinations because of national security concern.
- The Shanghai Composite Index closed at 2,908.77 points, down 23.74 points or 0.81%. The Shanghai and Shenzhen 300 Index closed at 3,803.47 points, down 31.89 points or 0.83%. The RMB closed at 6.901 against 1 US dollar, down 0.272%.
- China’s Ministry of Commerce spokesman Gao Feng said that the Chinese and US work teams will conduct intensive consultations in August to prepare for the leaders’ high-level consultations in September.
- Before committing to buy more US agricultural product in this week, China canceled 14,700 tons of US pork that was scheduled to ship this year and next year, which is the largest US pork order that China has cancelled since records began.