Trump Predicts a "Great Deal" With China as Bilateral Trade Row Persists

Trump Predicts a

Trump Predicts a "Great Deal" With China as Bilateral Trade Row Persists

Fear that the Trump administration will announce tariffs on all remaining imports from China helped knock USA stocks from a strong early gain to another sharp loss Monday.Technology companies sank again after Bloomberg News reported that the planning new tariffs if the two sides don't make progress in trade talks next month.Technology and internet companies, industrials and retailers took steep losses as Wall Street's recent bout of volatility continued. According to Bloomberg News, the additional tariffs will be announced in December if no breakthrough results from the meeting.

IBM saw its stock increase early Monday after news of its acquisition of cloud computing software company Red Hat for $34 billion, but it ultimately closed down 4 percent.

US equity futures advanced on Wednesday and European stocks jumped, tracking a rebound across Asia as the worst month for global equities in six years draws to a close.

The Dow Jones Industrial Average was up 206 points to 24,649, the S&P 500 index gained 0.8 percent, while the Nasdaq Composite Index was also up 0.8 percent. Italy's FTSE MIB index rose 1.9% after Standard & Poor's did not downgrade its credit rating. But Germany's DAX fell 0.2 percent to 11,316 and the CAC 40 in France sank 0.2 percent to 4,980 after weak eurozone growth figures.

The response on Wall Street was to send the Dow plunging after it had opened by more than 300 points up. After Cooper Tire & Rubber reported a bigger third-quarter profit than analysts expected, its stock surged 21.4% to $30.89. Most of those imports are now being charged a 10 percent tariff, which is set to increase to 25 percent at the end of the year. The issue is often put in terms of the "loss of face" by the Chinese leadership if it backs down-a position advanced by historian Niall Ferguson in an interview on the business channel CNBC yesterday as he pointed to the intractable character of the US-China trade conflict. Trade-sensitive industrial shares rose almost 1.2 per cent in mid-morning trading.

USA crude fell 1.06 percent to $66.33 per barrel and Brent was last at $76.30, down 1.34 percent.

The Russell 2000 is down 58.20 points, or 3.8 percent.

All sectors on the TSX lost ground on Monday, led by cannabis-heavy health care which was down more than 10 per cent. Aphria Inc. closed down 17.35 per cent, Canopy Growth Corp.

ENERGY: Benchmark U.S. crude added 6 cents to $67.10 per barrel in electronic trading on the New York Mercantile Exchange.

Elsewhere, gold fell and oil edged up from a two-month low.

CURRENCIES: The dollar strengthened to 112.95 yen from 112.37 yen late Monday.

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