Thursday, 9 May 2019

Markets mixed, Chinese exports fall as all-out trade war looms

Markets were mixed on Wednesday.

The S&P 500 fell 0.2 percent and the Nikkei 225 tumbled 1.5 percent but the STOXX Europe 600 rose 0.2 percent. The Shanghai Composite resumed its slide, falling 1.1 percent after a slight rebound on Tuesday.

Worries over the US-China trade dispute lingered, especially after China reported that its exports fell 2.7 percent in April from a year earlier.

“The outlook for Chinese exports is challenging. If Trump follows through on his latest tariff threats, we think this would drag down export growth by two to three percentage points,” Capital Economics said in a research note.

And things could get worse for China and possibly, the rest of the world, as a CNBC report suggested that an all-out trade war is about to begin.

“Fasten your seatbelt and don't hold your breath,” Bank of America strategists wrote.

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