German exports stabilized, but trade risks remain: finance ministry By Reuters



BERLIN (Reuters) – German exports stabilized at the end of the third quarter but a slowing world economy and persistent trade risks for Europe’s largest economy point to only moderate developments in the coming months, the finance ministry said on Thursday.

Germany’s manufacturers, whose exports have been a reliant growth driver for decades, are struggling with weaker foreign demand, tariff disputes sparked by U.S. President Donald Trump’s trade policies and business uncertainty linked to Britain’s decision to leave the European Union.

“Export activity regained some momentum toward the end of the third quarter,” the finance ministry said in its monthly report, adding that business sentiment surveys and industrial orders were pointing to a continued trend of subdued trade.

“Given the weakening global economic momentum and persistent external risks (for trade), exports are likely to continue to develop only moderately,” the ministry said.

Record-high employment and rising wages continue to support private consumption and construction in Germany while state spending is giving the economy an additional push, it added.

The German economy narrowly avoided slipping into recession in the third quarter as consumers, state spending and construction drove a 0.1% quarterly expansion.

The Federal Statistics Office will publish detailed gross domestic product growth figures on Friday which will shed more light on how much household consumption, government spending, private sector investment and foreign demand helped Europe’s largest economy to avoid another quarter of contraction.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Asian shares slide as Sino-U.S. spat on Hong Kong clouds trade deal outlook


TOKYO (Reuters) – Global shares slid on Thursday as a fresh row between Washington and Beijing over U.S. bills on Hong Kong could complicate their trade negotiation and delay a “phase one” deal that investors had initially hoped to be inked by now.

FILE PHOTO: A man (R) cleans electronic boards showing Japan’s Nikkei average, the exchange rate between the Japanese yen against the U.S. dollar and stock quotation outside a brokerage in Tokyo, Japan, in this April 6, 2016 file photo. REUTERS/Issei Kato/Files

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.16% while Japan’s Nikkei .N225 dropped 0.25%.

U.S. S&P500 futures ESc1 dropped 0.2% in early Asian trade, a day after MSCI’s broadest gauge of world stocks fell 0.4%, the biggest fall since early October.

On Wall Street, all three major indexes fell, with the S&P 500 .SPX losing 0.38%.

The U.S. House of Representatives on Wednesday passed two bills intended to support protesters in Hong Kong and send a warning to China about human rights.

The legislation, which has angered Beijing, has been sent to the White House for President Donald Trump to sign or veto amid delicate trade talks with Beijing.

Trump is expected to sign the legislation, a person familiar with the matter said on Wednesday.

Even if he vetoes, that would be difficult to sustain given that the measures passed both the Republican-controlled Senate and Democratic-controlled House with almost no objections.

“China will surely take this as an interference into its domestic affairs and is likely to think it will no longer need to make concessions on trade,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

Trade experts and people close to the White House said completion of a “phase one” U.S.-China trade deal could slide into next year, as Beijing presses for more extensive tariff rollbacks, and the Trump administration counters with heightened demands of its own.

Trump said on Oct. 11 that deal could take as long as five weeks, and investors had initially expected a deal by mid-November.

Asked Wednesday about the status of the China deal, Trump told reporters in Texas: “I don’t think they’re stepping up to the level that I want.”

Trade jitters sent the 10-year U.S. Treasuries yield down to 1.747% US10YT=RR, near its lowest levels in three weeks and down more than 20 basis points from a Nov. 7 peak of 1.973%, a three-month high.

Similarly in the currency market the yuan hit a three-week low of 7.05 per dollar in offshore trade on Wednesday and last stood at 7.045 yuan per dollar CNH=, down about 0.09% in early Asian trade.

The dollar slipped against the yen to 108.46 JPY=, compared to this week’s high of 109.07 touched on Monday, while safe-haven gold edged up 0.18% to $1,473.6 per ounce XAU=.

The euro was little changed at $1.1075 EUR=.

The minutes from the Federal Reserve’s previous policy meeting offered little guidance on what would cause policymakers to change their minds on the outlook after an increasingly divided Fed decided to hit pause in its easing cycle.

Oil prices held firm having surged more than 2% on Wednesday after a better-than-expected U.S. crude inventories report and as Russia said it would continue its cooperation with OPEC to keep the market balanced.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 0.18% at $56.91 per barrel in early Thursday trade.

Editing by Stephen Coates



Source link

Japan’s Exports Drop Most Since 2016 Amid Trade Wars and Typhoon By Bloomberg



(Bloomberg) — Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. 

Japan’s exports suffered their largest drop in three years in October, as the U.S.-China trade war continued to hit global demand and extreme weather disrupted output at home.

Exports fell 9.2% from a year ago, dropping for an 11th month and extending the longest streak of monthly declines since 2016, Ministry of Finance data showed Wednesday. Economists had forecast a 7.5% slide. Exports to China and the U.S., Japan’s two biggest markets, logged double-digit falls. Drops in automobile and steel shipments were major factors, along with damage from last month’s super typhoon.

Key Insights

  • Despite rumblings that Washington and Beijing are nearer to a truce that could roll back tariffs, global manufacturers remain in a funk over the global economy and uncertainty surrounding the trade outlook.
  • Takeshi Minami, economist at Norinchukin Research Institute, said the continued weakness in exports could be a factor that pushes the Japanese government to add to the size of a stimulus package announced earlier this month, partly to shield the economy from the global slowdown. “We may see politicians increasingly calling for a sizable economic package,” he said.
  • Still, the latest data, partly distorted by bad weather, needn’t be a cause for pessimism, Norinchukin’s Minami said, adding that there were further signs that the worst was over for the global tech sector.
  • Speaking after the data was released, a finance ministry official said that manufacturing disruption caused by Typhoon Hagibis may have contributed to October’s drop in auto trade.
  • The export slump has made the economy more dependent on consumer demand at a particularly vulnerable time. A sales tax hike introduced last month is expected to weigh heavily on spending this quarter.
  • South Korean boycotts of Japanese products likely contributed to the drop in Japan’s exports of autos and food to its neighbor, according to economist Yutaro Suzuki at Daiwa Institute of Research Holdings. Since summer, the two countries have been embroiled in their own trade spat stemming from a dispute over Japan’s colonial past. Exports to Korea fell 23% in October.

What Bloomberg’s Economist Says

“The U.S.-China trade war continues to undermine supply-chain demand, and remains the biggest downside risk to Japan’s exports.”

–Yuki Masujima, economist

Click here to read more

Get More

  • Imports slid 14.8% in October, compared with economists’ median estimate of a 15.2% slump.
  • The trade balance was a 17.3 billion yen surplus, the first surplus since June.
  • Exports to China dropped 10.3%, while shipments to the U.S. fell 11.4%.
  • Chipmaking equipment exports were down 5.7% in October, compared with average falls of 16.2% over the six months through September. Exports of chips were up 3.6% in the month, compared with average falls of 2.3% in the prior six months.

(Updates economist comments.)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



U.S. House Speaker Pelosi says enforcement is key to USMCA trade deal By Reuters



WASHINGTON (Reuters) – U.S. House of Representatives Speaker Nancy Pelosi said on Tuesday an agreement with the Trump administration on the U.S.-Mexico-Canada trade deal can be reached if it is enforceable.

“We can reach an agreement on USMCA when the Trade Representative makes the new NAFTA agreement enforceable for America’s workers,” Pelosi said in a joint statement with House Ways and Means Committee Chairman Richard Neal after meeting with AFL-CIO President Richard Trumka, who has been critical of the accord.

The White House has dismissed House Democrats’ efforts to shore up enforcement of the trade agreement’s labor and environmental provisions, which are key union concerns, as purely political.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Asia shares numbed by trade noise, oil takes a spill


SYDNEY (Reuters) – Asian shares lumbered lower on Wednesday as the Sino-U.S. trade talks produced nothing but a stream of conflicting messages, while concerns about a glut of supply saw oil prices suffer their biggest spill in seven weeks.

FILE PHOTO: Visitors look at an electronic stock quotation board at the Tokyo Stock Exchange (TSE) in Tokyo, Japan, October 1, 2018. REUTERS/Toru Hanai

Figures from the American Petroleum Institute out late Tuesday showed a far larger rise in crude stocks than expected. That followed reports Russia was unlikely to deepen its cuts to crude output.

Brent crude LCOc1 futures stood at $60.91 a barrel early on Wednesday, after sliding 2.6% overnight, while U.S. crude CLc1 recouped a single cent to $55.22.

Action in share markets was subdued with MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS off 0.25%. Japan’s Nikkei .N225 eased 0.2% and South Korea .KS11 0.4%. E-Mini futures for the S&P 500 ESc1 lost 0.1%.

Hopes for progress on the U.S.-China dispute had risen on Tuesday when Bloomberg reported that the previous talks that failed in May were being considered as a benchmark on what U.S. tariffs on China would be rolled back.

But later, U.S. President Donald Trump threatened to raise tariffs further if China would not agree to a deal that he liked.

The aggressive tone unsettled Wall Street and the Dow .DJI ended Tuesday down 0.36%, while the S&P 500 .SPX lost 0.06% and the Nasdaq .IXIC added 0.24%.

Dour forecasts from retailers Home Depot and Kohl’s fueled worries about consumer spending, while the energy sector .SPNY was the S&P’s biggest loser as oil slid. [.N]

FED IN FOCUS

“The immediate focus remains on the U.S.-China trade talks, and markets seem reluctant to move much in either direction until they are resolved,” wrote analysts at ANZ in a note.

“It was noticeable that fixed income markets rallied despite equity markets being stable, suggestive of a market that remains cautious about the growth outlook.”

Yields on U.S. 10-year Treasuries US10YT=RR dropped to a two-week trough at 1.77%, with a marked flattening of the curve hinting at a possible return of recession fears.

The dip in yields nudged the dollar down on the safe-haven Japanese yen and it was last at 108.43 JPY=, though still within the 107.87 to 109.48 range of the last five weeks.

The euro inched up to $1.1077 EUR=, but faced chart resistance at $1.1090. The dollar was steadier on a basket of currencies at 97.829 .DXY.

Investors are now awaiting minutes of the Federal Reserve’s last policy meeting where it cut interest rates and signaled a pause for the time being.

“The minutes will elaborate on the Fed’s view that the downside risks to the U.S. economy have eased, and that a “material reassessment” of the economic outlook will be needed for it to cut rates again,” said Joseph Capurso, an analyst at Commonwealth Bank of Australia.

“We see the FOMC now on hold until March, 2020.”

The market has all but given up on the prospect of an easing in December, which is now priced at just 0.8%. A move in March is put at a probability of around 42%. FEDWATCH

The risk-off tone helped spot gold firm 0.1% to $1,474.14 per ounce XAU=.

Editing by Stephen Coates



Source link

Dollar steadies after 3 days of losses as trade deal hopes dim By Reuters


© Reuters. A man displays US dollar notes after withdrawing cash from a bank in Harare

By Saikat Chatterjee

LONDON (Reuters) – The dollar stabilized against a broad basket of other currencies on Tuesday after three consecutive days of losses as investors waited for the release of the minutes of the U.S. central bank meeting at end-October when policymakers had cut interest rates.

Global macro hedge funds had ramped up their dollar selling for a third week according to latest weekly positioning data and some market watchers say hawkish policy minutes could trigger a dollar rebound.

The greenback has hit a trough since late last week as hopes for a preliminary trade deal between the United States and China evaporated.

Expectations had grown that Washington and Beijing would sign a so-called “phase one” deal this month to scale back their 16-month-long trade war but those hopes received a setback on Monday after CNBC reported China is pessimistic about agreeing to a deal, which suggests a resolution to perhaps the biggest risk to the global economy remains elusive.

“Trade headlines is dominating sentiment but in terms of the key event risk, the release of the Fed minutes will be a big one for market participants,” said Morten Lund, a senior FX strategist at Nordea.

Against a basket of its rivals (), the greenback was broadly steady at 97.84 after weakening more than 0.6% in the last three sessions. It had hit a one-month high of 98.45 on Nov. 13.

Elsewhere in the currency market, the Australian dollar fell 0.16% to $0.6799 and declined 0.26% to 73.82 yen ().

Australia’s central bank “agreed a case could be made” for another cut in the 0.75% cash rate at its November meeting given unwelcome weakness in wages growth and inflation, minutes published on Tuesday showed.

Sterling held firm around $1.2950 with the pound buoyed by polls pointing to a victory by the ruling Conservatives in upcoming elections.

In the onshore market, the yuan fell to a two-week low of 7.0295 per dollar.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Oil slips as concerns over U.S.-China trade talks drag on By Reuters


© Reuters. FILE PHOTO: An oil pump is seen just after sunset outside Saint-Fiacre

By Seng Li Peng

SINGAPORE (Reuters) – U.S. oil prices fell for the second straight day on Tuesday amid market jitters over limited progress between China and the United States on rolling back trade tariffs, while expectations of a rise in U.S. inventories also jangled nerves.

West Texas Intermediate (WTI) crude () dropped 32 cents or 0.56% to $56.73 a barrel by 0803 GMT, slipping further away from an eight-week high hit last Friday when hopes for the trade deal rose.

Brent crude futures () were down 26 cents, or 0.42%, at $62.18 a barrel.

A Chinese government source was quoted by broadcaster CNBC on Monday as saying there was gloom in Beijing about prospects for a trade deal, with Chinese officials troubled by U.S. President Donald Trump’s comment that there was no agreement on phasing out tariffs.

“We had reports overnight that the mood in Beijing was pessimistic,” said Michael McCarthy, chief market strategist at brokerage CMC Markets in Sydney. “The lack of announcement is really concerning for the demand outlook … the market is very nervous about the trade talks.”

The lingering trade battle that has seen the world’s two biggest economies impose tit-for-tat tariffs on each other has hit global growth prospects and clouded the outlook for future oil demand.

Meanwhile, a preliminary Reuters poll on Monday that showed U.S. crude oil stockpile are expected to rise for a fourth straight week also squeezed prices. [EIA/S]

The American Petroleum Institute is scheduled to release its data for the latest week at 4:30 p.m. EDT (2030 GMT) on Tuesday, while the Energy Information Administration’s official weekly report is due on Wednesday.

“Unless we get further concrete signs of global growth rally or an extension in production cuts by OPEC+ (the Organization of the Petroleum Exporting Countries and associated producers including Russia), WTI will struggle to attempt to recapture the $60-a-barrel mark,” said Edward Moya, senior market analyst at OANDA in New York.

One possible factor supporting prices going forward was a renewal in geopolitical tensions, with news from Dubai that armed members of Yemen’s Iran-aligned Houthi movement had seized a vessel towing a South Korean rig at the southern end of the Red Sea over the weekend.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Hong Kong confirms economy fell into recession amid protests, trade war By Reuters


© Reuters. FILE PHOTO: A woman crosses a street in the Central business district in Hong Kong

HONG KONG (Reuters) – Hong Kong sank into recession for the first time in a decade in the third quarter, government data confirmed on Friday, weighed down by increasingly violent anti-government protests and the escalating U.S.-China trade war.

The economy shrank by 3.2% in July-September from the previous quarter on a seasonally adjusted basis, revised government data showed, in line with a preliminary reading.

Gross domestic product (GDP) contracted for the second consecutive quarter, meeting the technical definition of a recession.

With no end to the protests in sight, analysts warn the financial and trading center potentially faces a longer and deeper slump than during the global financial crisis in 2008/2009 and the SARS epidemic in 2003.

From a year earlier, the economy contracted 2.9%, also in line with the preliminary reading. The readings were the weakest since the global crisis.

“Domestic demand worsened significantly in the third quarter, as the local social incidents took a heavy toll on consumption-related activities and subdued economic prospects weighed on consumption and investment sentiment,” the government said in a statement.

It revised down its forecast for full-year growth to a contraction of 1.3% versus an earlier estimate of 0-1% growth. That would mark the first annual decline since 2009.

“Ending violence and restoring calm are pivotal to the recovery of the economy. The government will continue to closely monitor the situation and introduce measures as necessary to support enterprises and safeguard,” the government said.

More than five months of political protests have plunged the city into its worst crisis since it reverted from British to Chinese rule in 1997.

Tourists are cancelling bookings, retailers are reeling from a sharp drop in sales and the stock market is faltering, adding to pressure the city is feeling from China’s economic slowdown and the prolonged Sino-U.S. trade dispute.

August retail sales were the worst on record – down 23% from a year earlier – while September’s plunged 18.3%.

Parts of the city were paralyzed for a fifth day on Friday. Transportation disruptions have become common and some shopping malls and other businesses are shuttering early as the unrest escalates.

BUSINESS GATEWAY TO CHINA

Hong Kong is one of the world’s most important financial hubs with total banking, fund and wealth management assets worth more than $6 trillion.

Many businesses with ambitions to expand in China still consider it as a gateway into the mainland, while Chinese firms use it to access international capital, as well as a testing ground and springboard for their global ambitions.

Business activity in the private sector fell to its weakest in 21 years in October, according to IHS Markit, while demand from mainland China declined at the sharpest pace in the survey’s history – which started in July 1998.

The government has rolled out stimulus measures since August, but since it is forced to keep a high level of reserves to back the Hong Kong dollar peg to the U.S. dollar, the packages have been relatively small.

Analysts also doubt the effectiveness of handouts, since the uncertainty prevents businesses and consumers from spending and investing, and store closures will lead to job losses.



Kashmir shutdown caused losses of more than $1 bln, trade body says By Reuters


Kashmir shutdown caused losses of more than $1 bln, trade body says

By Zeba Siddiqui

SRINAGAR (Reuters) – Economic losses in Kashmir have run well over a billion dollars since India revoked its autonomy and statehood in August, the main trade body in the Himalayan region said, adding that it planned to sue the government for damages.

India turned its erstwhile state of Jammu and Kashmir into a federally-controlled territory, tightening control in a shock move it said would rein in militancy in the region also claimed by neighboring Pakistan, and promote its development.

But the Kashmir Chamber of Commerce and Industry (KCCI) said development was elusive, thanks to a protracted shutdown after people closed markets and businesses as a mark of protest, and for fear of reprisals from insurgents.

It estimated economic losses ran into least 100 billion rupees ($1.40 billion) by September, but now exceeded that, said Nasir Khan, its senior vice president.

“We’ll ask the court to appoint an external agency to assess the losses, because it is beyond us,” said Khan, adding that India’s telecoms blackout in the region meant the body could not reach business owners by telephone to prepare estimates.

Instead, it had to send staff to meet them and gather details.

India’s home ministry and local government officials did not respond to detailed requests for comment.

Besides severing telecoms links ahead of its decision, India imposed curbs on travel and sent thousands of troops to the heavily-militarized region, citing security concerns.

Some curbs have since been eased, but access to the internet remains largely blocked.

India and Pakistan have tussled over Kashmir since independence from Britain in 1947, with each claiming the region in full but ruling it only in part.

For decades, India has battled insurgency in the portion it controls. It blames Pakistan for fuelling the strife, but Pakistan denies this, saying it gives only moral support to non-violent separatists.

The clampdown has hit tourism as well as farming, horticulture and the arts and crafts that contribute the most to its export-oriented economy. [nL3N2732U3]

“I don’t see any stability for many months here,” said Vivek Wazir, who runs a hotel in Kashmir’s main city of Srinagar. “There’s too much uncertainty.”

Although a few years ago he planned to expand his business in Kashmir, Wazir said the hotel was now barely breaking even, and he was instead considering opening one in the neighboring Indian state of Himachal Pradesh.

India canceled an investor summit it had planned in Kashmir in October, and most tourists have stayed away after a spate of attacks on non-locals in recent weeks, which police blame on militants backed by Pakistan.

“I’d be surprised if any genuine investors came,” said Khan, adding that KCCI had received no inquiries from potential investors since August.



Dollar nurses losses as hopes for trade deal fade By Reuters



By Stanley White

TOKYO (Reuters) – The dollar nursed losses against major currencies on Tuesday as receding hopes for a preliminary trade deal between the United States and China hurt demand for the greenback.

The Australian dollar held steady before minutes from a Reserve Bank of Australia policy meeting which may provide clues about the future course of interest rates.

There have been high expectations that the United States and China would sign a so-called “phase one” deal some time this month to scale back their 16-month long trade war.

However, the dollar took a hit on Monday after CNBC reported that China is pessimistic about agreeing a deal, which suggests a resolution to perhaps the biggest risk to the global economy remains elusive.

“The dollar tried to break above 109 yen, but it couldn’t because of worries about the trade deal,” said Junichi Ishikawa, senior foreign exchange strategist at IG Securities in Tokyo.

“The Treasury market is starting to reflect similar concerns about the lack of a trade deal. This will keep dollar/yen in a narrow range.”

The dollar was a shade lower at 108.65 yen, following a 0.09% decline on Monday.

The dollar was quoted at $1.1072 per euro () on Tuesday in Asia after falling to the lowest in almost two weeks.

Against a basket of six major currencies, the () stood at 97.794, close to a two-week low.

Citing a government source, CNBC reported on Monday that Beijing was pessimistic about a trade deal with the United States, troubled by Trump’s comments that there was no agreement on phasing out tariffs.

Washington and Beijing have imposed tariffs on each other’s goods in a bitter dispute over Chinese trade practices that the U.S. government says are unfair.

The tariffs have slowed global trade and raised the risk of recession for some economies. Many economists say the drag on global growth will remain as long as tariffs stay in place.

Currency traders were also wary of the dollar after Trump met U.S. Federal Reserve Chairman Jerome Powell on Monday amid the U.S. president’s repeated criticism that the Fed has not lowered interest rates enough.

“Everything was discussed including interest rates, negative interest, low inflation, easing, Dollar strength & its effect on manufacturing, trade with China, E.U. & others, etc.,” Trump tweeted soon after the meeting, calling the session “good & cordial.”

In a statement, the Fed said Powell’s expectations for future policy were not discussed, but Trump has for more than a year charged the Fed with undermining his economic policies by, in his view, keeping interest rates too high.

Elsewhere in the currency market, the Australian dollar was quoted at $0.6812.

Australia’s central bank will release minutes later on Tuesday from its meeting earlier this month where it kept policy steady but left the door ajar for further easing if needed.

The central bank has already cut rates three times to an historic low of 0.75%.

The took a hit last week after data showed Australian employment suffered its sharpest fall in three years in October, underlining the need for stimulus.





Source link