Sun, 18 Aug 2019

World Markets Plunge on Concerns Over US-China Trade Relations

Voice of America
07 Dec 2018, 07:05 GMT+10

U.S. stocks fell sharply again Thursday, following steep drops on Asian and European markets, with investors worried about the fate of trade negotiations between the United States and China, the world's biggest economies.

Indexes in New York dropped 1.5 percent or more throughout the day's trading, following losses on Tuesday. The U.S. markets were closed on Wednesday for a national day of mourning honoring the late President George H.W. Bush.

The U.S. losses followed declining markets in Asia, where the Nikkei closed off nearly 2 percent. European indexes fell more than 3 percent.

The wide rout was partly fueled by the arrest of Meng Wanzhou, a key executive with Chinese telecom giant Huawei Technologies. Her arrest in Canada could threaten the recent truce in the trade war between the U.S. and China. Chinese authorities have called on Washington and Ottawa to explain why Meng was arrested and demanded her release.

Canadian officials announced Wednesday that Meng Wanzhou, Huawei's chief financial officer and the daughter of the company's founder, was detained in Vancouver last Saturday on suspicion of trying to evade U.S. sanctions on Iran. She now faces a bond hearing Friday, pending possible extradition to the United States to face criminal charges.

Her arrest came on the same day U.S. President Donald Trump and Chinese President Xi Jinping reached an agreement on a 90-day truce on their tit-for-tat tariff hikes in order to forge a new trade pact.

But since then, there have been mixed signals from Trump.

He rattled markets on Tuesday, declaring himself 'a Tariff Man,' signaling he would impose more levies on Chinese exports if the two countries did not reach a trade agreement.

Trump said China is planning to resume buying U.S. soybeans and natural gas, which he said confirms his claims China had agreed to start 'immediately' buying U.S. products.

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