Global stocks pummeled by Trump's tariffs, safe-havens surge

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Global stocks are set to take another beating on Friday after U.S. President Donald Trump said he would slap a 10per cent tariff on the remaining ...

TOKYO: Global stocks are set to take another beating on Friday after U.S. President Donald Trump said he would slap a 10per cent tariff on the remaining US$300 billion of Chinese imports from next month.

"After U.S.-China summit meeting, people had expected there would be a lull for quite some time," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management. Gold held firm at US$1,442.9 per ounce, having risen 2.4per cent on Thursday and near a six-year high of US$1,453 touched two weeks ago.

The 10-year U.S. bond yield fell almost 12 basis points on Thursday to 1.902 percent , hitting the lowest level since Nov. 8, 2016, when Trump won a surprise victory in the presidential election. The new tariffs would hit a wide swathe of consumer goods from cell phones and laptop computers to toys and footwear, at a time when the manufacturing sector is already reeling from the accumulative impact of the trade war.

 

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