Overseas Market Report
Wall Street has rebounded in a broad-based rally as investors brushed aside intensifying trade rhetoric between the United States and China. All three major US indexes closed higher on Tuesday following Monday’s sell-off.
Late on Monday, US President Donald Trump announced that 10 per cent tariffs on $US200 billion ($A277 billion) in imports from China would go into effect next week, escalating the tit-for-tat trade spat between the world’s two largest economies. China responded on Tuesday by unveiling 10 per cent tariffs on about $US60 billion of US goods also effective September 24.
“Initially they were talking about tariffs in the 20 to 25 per cent range, and that’s actually been lowered to 10 per cent,” said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco. “Maybe these numbers aren’t going to be as bad as initially thought. “There’s much more pressure on the Chinese to reach a deal than there is on (the United States), at this point,” Massocca added.
Tech stocks were bolstered by news that Apple and fitness gadget-maker Fitbit would escape the tariffs. Apple shares closed up 0.2 per cent while Fitbit shares rose 6.4 per cent.
Morning Market Note - Wednesday 19th September