Economy

USA stock markets fall sharply amid fears of global trade war

USA stock markets fall sharply amid fears of global trade war

However, the Dow Jones industrial average could be heading for a seventh straight losing session. With concerns growing on Wall Street, the Dow Jones industrial average closed down almost 300 points - more than 1 percent - on its sixth straight losing day.

Mr Trump added: "These tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced".

China has underestimated President Donald Trump's resolve to press ahead with tariffs unless Beijing changes its "predatory" trade practices, a top USA trade adviser said on Tuesday, in comments that undercut the chances of a negotiated settlement to a looming trade war between the world's economic superpowers.

He said the move would be in retaliation for China's decision to raise tariffs on $50 billion in United States goods.

The dollar fell against the yen in early Asian trade on Tuesday after U.S. President Donald Trump's threats of more tariffs on China raised worries about an escalating trade war between the world's two largest economies. "We do our best to call out unfair economic behaviors as well".

The Trump administration has "blood lust" when it comes to pushing its trade agenda against China and wants to "suck the lifeblood" from China's economy, a state-run newspaper said on Wednesday, stepping up the angry rhetoric over their dispute.

That prompted a sharp response from Beijing, with China's Commerce Ministry accusing the United States of "extreme pressure and blackmail".

Stock markets of both countries are posting big losses. "It's not easy but we're getting there", he told a group of USA small business executives. Boeing's stock shed 3.6 percent, Caterpillar 3.7 percent and GE 1.7 percent. USA crude fell 1.6 percent to $64.80 a barrel in NY, and Brent crude, the worldwide standard for oil prices, fell 0.5 percent to $74.94 a barrel in London.

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Meanwhile, the Commerce Department said building permits plunged by 4.6 percent to an annual rate of 1.301 million in May after falling by 0.9 percent to a revised rate of 1.364 million in April.

Boeing, the single largest USA exporter to China, slipped 0.8 percent, while construction equipment maker Caterpillar fell 1.3 percent.

As the U.S. trade war with China looks set to escalate, Dr Tony Syme, expert in macroeconomics and worldwide finance at the University of Salford Business School, comments on what the impact might be and how it could reach much further than just the two countries involved.

The S&P 500 index is rising 8 points, or 0.3 percent, to 2,771. -China trade dispute hit stock indexes around the globe. Shanghai stock exchange closed the Tuesday trading session at its lowest level in the last two years. Stocks tumbled almost 3 percent in Hong Kong, 2 percent in Tokyo and 4 percent in Shanghai.

Earlier, the Shanghai Composite Index .SSEC ended 3.8 percent lower after slumping almost 5 percent at one point to its lowest level since mid-2016.

The market ructions and trade barbs also pose a challenge for China's push to boost the profile of the booming tech sector on mainland bourses.

Shares of Japanese construction equipment makers Komatsu Ltd and Hitachi Construction Machinery tumbled 3.9 percent and 2.8 percent, respectively. China retaliated swiftly by announcing reciprocal tariffs on USA products, ranging from soybeans and autos to seafood.

Commodities have also suffered because of the rising US dollar following the Federal Reserve's decision to raise rates last week, he said.