Stocks swing back into red on fresh US tariffs

Source:Reuters-Global Times Published: 2018/8/8 17:33:40

Chinese mainland stocks dipped on Wednesday as the US said it would slap tariffs on more Chinese goods before month-end, overshadowing China's pledges to spur growth and cushion the economy from what is shaping up to be a protracted trade war between the two powers.

The Shanghai Composite Index fell 1.27 percent to end at 2,744.07 points. Meanwhile, the blue-chip CSI300 index ended 1.61 percent lower at 3,314.51 points.

Both indexes posted their biggest daily gains since 2016 on Tuesday, rebounding from four days of heavy losses and raising hopes that their dizzying trade-induced slide into correction territory may be easing up.

However, stocks returned to the red despite stronger-than-expected July export data on Wednesday, which appeared to show that an earlier round of US tariffs on Chinese imports had not significantly impacted global demand for China's goods.

Chinese stock markets are highly sensitive to changes in liquidity and have generally been quick to respond to even vague pledges of government pump priming in the past.

But the flurry of punitive trade measures from the Trump administration and little sign of compromise from either side has left many investors doubtful of a sustained turnaround for shares in the near term.

Posted in: MARKETS

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