Fear that the Trump administration will announce tariffs on all remaining imports from China helped knock US stocks from a strong early gain to another sharp loss Monday.Technology companies sank again after Bloomberg News reported that the U.S.is planning new tariffs if the two sides don't make progress in trade talks next month.Technology and internet companies, industrials and retailers took steep losses as Wall Street's recent bout of volatility continued.
"It looks as if rivalry and confrontation became the prevailing aspect of our path ahead", said Cui, speaking during a trade war in which both countries have slapped punitive tariffs on hundreds of billions of dollars worth of imports.
For most of this year, investors have remained hopeful that the United States and China would work out their disagreements on trade policy and that numerous tariffs would be reduced or eliminated. The sources stressed however that the new tariffs have not yet been finalised.
The newspaper noted that U.S. businesses had been hoping there would be sufficient progress at the G20 meeting between Trump and Xi to at least bring about a suspension of the planned escalation of the tariff hike on the $200 billion worth of Chinese goods, many of them consumer goods and components for United States products, set for January 1. The Shanghai Composite index rebounded 1.2 percent to 2,573.33 and South Korea's Kospi picked up 1.3 percent to 2,021.82. The reason the yuan is being dumped now is that investors are concerned about a trade war between America and China. On Monday, Trump repeated his assertion that China was not "not ready" to strike a deal to bring an end to the costly dispute. The Dow Jones Industrial Average ended down 1 percent, while the Nasdaq fell 1.6 percent, also on weakness in technology and internet shares.
Other members of the so-called FAANG group also sold off. Apple shed 1.9 percent while Facebook gave up 2.3 percent.
The Stoxx Europe 600 Index surged 1.3 percent to the highest in a week. Ten percent tariffs on $200 billion in imports that took effect in September are due to increase to 25 percent on January 1.
The euro was flat at $1.1392.
Bond prices slipped. The yield on the 10-year Treasury note rose to 3.08% from 3.07%. The Clinton administration made public a negotiating offer by the then Chinese Premier Zhu Rongji, which led to him being pilloried at home for offering too many concessions. Brent crude, used to price worldwide oils, lost 19 cents to $77.18 per barrel.
USA crude fell 1.28 percent to $66.18 per barrel and Brent was last at $76.07, down 1.64 percent.
CURRENCIES: The dollar strengthened to 112.95 yen from 112.37 yen late Monday.