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Global markets were stable on Tuesday after US President Donald Trump stopped the trade war with Canada and Mexico, even when the US and China exchanged the Tit-for Tat tariffs.
The Hang Senges in Hong Kong increased by as much as 3.3 percent, after which they removed a few of its profits to approach 2.7 percent run by Chinese technology corporations. Offshore Renminbi barely strengthened the RMB7.31 dollar, while oil prices dropped.
European markets opened barely, and Stoxx Europe 600 has withdrawn by 0.5 percent in early trade. FTSE 100 fell by 0.6 percent. Futures in the US have indicated that the S&P 500 and Nasdaq will open a bit down.
Trump on the weekend imposed a ten % increase in Tariffs to China, which entered into force on Tuesday. Other fees in Canada and Mexico were detained on the market on Monday for fear of world trading contraction.
China took revenge with tariffs for energy export in the US, further trade restrictions on critical minerals and the antitrust Google probe, but the markets have rejected the influence. Continental China markets were closed on Tuesday.
“It was a very measured reaction partly because China’s reaction was perceived as measured,” said Mitul Kotecha, head of the macro markets strategy in Barclays.
“The reaction on markets related to China was not as negative as it could be. . . 10 percent is not 60 percent – he added, referring to the scale of Trump’s tariffs to China.
The American dollar weakened by 0.4 percent compared to the basket of main trade currencies, including Euro and Jena.
Pause on the subject of fees against Canada and Mexico introduced hope for the market that a global trade war could be avoided, but the bench tariffs and Beijing’s reaction in some districts for escalation between the two largest economies in the world.
Prices Brent Ropa, an international level of oil reference, dropped by 1 percent to 75.2 USD per barrel on Tuesday. West Texas Intermediate, an American reference point, dropped by 1.6 percent to USD 72 per barrel.
Chinese companies listed in Hong Kong increased by 3.5 percent, in the sign that investors were not concerned about the latest Tit-For Tatt. LED technology supplies Profits from TENCENT, Alibaba, Xiaomi and JD.Com among the best performers. The State Chinese producer of chip SMIC jumped by 8.1 percent.
“There is quite a lot of optimism on local [Chinese] Tech, “said Wee Khoon Chong, a senior strategist for markets in BNY. “There is a way of optimism that if [Chinese AI company] Deepseek can do it, or perhaps it isn’t that bad. “
The growth of Chinese technological stocks occurred after Trump wrote on his social platform the truth: “Huge interest in Tiktok! It can be wonderful for China and everybody interested. “
Trump said that the Tariffs for China may rely on the Tiktok ownership agreement. Within just a few hours of his inauguration last month, Trump put down the date requiring the Chinese application owner to sell his participation or face a ban in the USA.
He is predicted to discuss with China’s leader XI Jinping in the coming days.
Other Asian markets also gained on Tuesday. The Nikkei 225 indicator in Japan in the Nikkei 225 indexes ended 0.7 percent, while Kospi South Korea was promoted 1.1 percent.
Taiwan Benchmark Taiex increased by 0.4 percent, run by Taiwan semiconductors of Manufacturing Company, which gained 2.3 percent.