Updated:2024-11-30 03:11 Views:176
This photo shows a general view of the central business district (L) and Victoria Harbour in Hong Kong on November 26, 2024. (Photo by Mladen ANTONOV / AFP)
China — Asian markets were mixed Wednesday as traders tried to gauge the economic outlook after Donald Trump picked a tough-negotiating hawk as his trade envoy the day after saying he would hit China, Canada and Mexico with hefty tariffs.
The stuttering performance followed a broadly negative day on Tuesday and came despite another record-breaking lead from Wall Street.
Article continues after this advertisementWhile he still has just under two months to go before taking office, Trump signalled Monday that he was ready to reopen his hardball playbook with America’s key trading partners if they do not stop illegal immigration and drug smuggling.
FEATURED STORIES BUSINESS The $38.7 Billion BPO Industry: Filipino workers’ English skills crucial to success BUSINESS BIZ BUZZ: No retail Armageddon here: New fashion brands coming BUSINESS Meta Capital Inc. completes merger and acquisition of Yu & Co.The threat to impose the levies on his first day reignited trade war fears at a time when central bankers are fighting to bring inflation under control, with several observers warning prices could begin to spike again.
Investors were also trying to ascertain the ramifications of the decision to name as trade envoy Jamieson Greer, who served as chief of staff to US Trade Representative Robert Lighthizer during the first Trump administration.
Article continues after this advertisement“Jamieson played a key role during my First Term in imposing Tariffs on China and others to combat unfair Trade practices,” the president-elect said, noting Greer’s experience pushing through a trade deal with Mexico and Canada.
Article continues after this advertisementNational Australia Bank’s Rodrigo Catril said: “President Trump is serious about using tariffs as a form of leverage.”
Article continues after this advertisementREAD: Trump vows to slap 25% tariffs on Mexico, Canada, 10% tariffs on China
Monday’s announcements “were linked to drugs and illegal immigration, but we must assume there is another layer of tariffs that should be coming on countries running trade surpluses with the US”, he said.
Article continues after this advertisementHe added that Trump was aiming for a “trade decoupling” and that “the question is whether he wants a mild decoupling or a severe one. Another observation is that we should expect retaliation, implying a negative impact on global trade”.
All three main indexes on Wall Street ended on a positive note, with the S&P 500 and Dow hitting record highs.
Minutes from the Federal Reserve’s November policy meeting, where it cut interest rates, showed officials would take a gradual approach when considering future reductions as the job market remained solid.
If data comes in about as expected, “it would likely be appropriate to move gradually toward a more neutral stance of policy over time”, the minutes said.
While economists had been expecting another cut in December, bets on that have been scaled back in light of Trump’s election amid worries his pledges to cut tax and impose tariffs would lead to another spike in prices.
Traders are keenly awaiting the release later Wednesday of the Fed’s preferred gauge of inflation as well as figures on jobless claims and economic growth.
That comes as US markets wind down for Thursday’s Thanksgiving holiday.
Oil prices edged down slightly after Israel and Hezbollah in Lebanon agreed a ceasefire that cooled geopolitical tensions in the Middle East. The commodity had fallen around three percent when news of a possible breakthrough emerged earlier this week.
However, crude was getting support from the prospect of key OPEC+ nations delaying a pick-up in production that was due to begin in January.
Bitcoin was sitting around $92,500, having hit a record Friday and come within a whisker of the $100,000 mark on hopes that Trump will move to ease restrictions on the crypto market.
Key figures around 0230 GMT
Tokyo – Nikkei 225: DOWN 0.7 percent at 38,165.85 (break)
Hong Kong – Hang Seng Index: UP 0.3 percent at 19,209.44
Shanghai – Composite: DOWN 0.6 percent at 3,241.12
Euro/dollar: UP at $1.0485 from $1.0482 on Tuesday
Pound/dollar: UP at $1.2572 from $1.2567
Dollar/yen: DOWN at 152.71 yen from 153.06 yen
Euro/pound: DOWN at 83.40 pence from 83.41 pence
West Texas Intermediate: DOWN 0.2 percent at $68.64 per barrel
Brent North Sea Crude: DOWN 0.2 percent at $72.70 per barrel
New York – Dow: UP 0.3 percent at 44,860.31 (close)
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London – FTSE 100: DOWN 0.4 percent at 8royal circle club,258.61 (close)
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