Markets Show Resilience as US-China Trade Tensions Flare
Stock markets demonstrated unexpected resilience Monday despite escalating trade tensions between the US and China, fueled by new tariffs announced over the weekend. While initial gains were tempered, markets largely absorbed the news, with some analysts suggesting traders are anticipating potential de-escalation through ongoing negotiations – dubbed a possible “Taco trade” by some observers.
shares in Anglo-Swedish pharmaceutical firm astrazeneca, which recently reached a deal with the Trump governance to lower drug prices and avoid tariffs, initially rose Monday morning before settling down 0.4%.
Asian markets experienced more meaningful declines, with Hong kongs Hang Seng index dropping 2.3%. The Taiwanese market fell by 1.4%, and the Thai exchange declined by 2%. Mainland China’s Shenzhen exchange saw a 1.4% decrease, while the Shanghai market slipped 0.4%.
China’s foreign ministry spokesperson,Lin Jian,urged the US to “promptly correct its wrong practices” and stated China would take steps to protect its interests.
Despite the trade dispute,Chinese exports rebounded in September,exceeding forecasts and indicating diversification of markets. Exports rose by 8.3% year-on-year, the fastest growth since March, surpassing the 6% increase predicted by Reuters-polled economists. This followed a 4.4% increase in August.
