Soybeans post record rally with demand gain overshadowing US-China trade war

Soybeans post record rally with demand gain overshadowing US-China trade war

Soybeans post record rally with demand gain overshadowing US-China trade war

The biggest impact will likely be seen in sales of the next US crop, which will come to market in September.

An analysis of over four dozen targeted U.S products showed that prices were little changed on Friday afternoon from earlier in the week. He noted that the new Russian tariffs will only allow a partial compensation of $87.6 million.

A possible prolonged trade war may also lead to slowdown in global economy, ultimately affecting Bangladesh's export, which is concentrated on single sector -readymade garment items.

Still, some US companies are benefiting.

It is also unclear whether they considered how their actions might encourage closer trade relations between China and the European Union (which are being discussed), or China and other Asia Pacific economies (also being negotiated). That effectively means the market had already priced in, or accounted for, the risks of a stepped-up trade conflict.

It could also isolate the USA, which has refused to settle differences through serious negotiations, as other global economies strike trade deals on their own.

"Trade war concerns have shot up to the top of our concerns for investors", said Isabelle Mateos y Lago, chief multi-asset strategist at BlackRock Investment Institute in London.

In the Bulgarian capital, Li will attend a meeting between China and 16 central and eastern European countries that will focus on trade.

Meanwhile, China has lodged a case with the World Trade Organisation (WTO) against the United States, according to the country's commerce ministry.

Initial market estimates of the impact of tit-for-tat Chinese and U.S. tariffs have been modest.

Trump has slapped tariffs on steel and aluminum imports from these countries while a number of them also slapped retaliatory tariffs on United States products, including steel and agricultural products, jeans and motorcycle.

It might also affect Bangladesh's remittance earnings if the trade war would prolong and caused global economic slowdown, he added.

He added that global policy is turning increasingly toward isolationism and lacks cooperation.

Le Drian said such policies have victims, "but the victims tomorrow will be the Americans themselves".

At a press conference in Beijing, China's foreign ministry spokesman Lu Kang defended the retaliatory tariffs on USA goods owing to the US' "unfair" trade actions.

A foreign ministry spokesman, Hu Chunhua, on Friday gave no details of the increase.

It also showed that the US central bankers discussed whether recession lurked around the corner and expressed concerns global trade tensions could hit an economy that by most measures looked strong. But Beijing previously issued a $34 billion list of American goods including soybeans and electric cars it said would be subject to 25 percent tariffs.

Just after the increase was due to take effect at midnight Friday Washington time, major benchmarks in China, Hong Kong, Japan and South Korea were steady.

"They're holding everything ... because there's uncertainty", he said. The Russell 2000 index of smaller-company stocks picked up 15 points, or 0.9 percent, to 1,694.

World stocks rose 0.2 per cent to their highest level in a week while Asian stocks climbed almost half a per cent led by a rebound in Chinese shares.

Erin Ennis, senior vice president of the U.S. China Business Council, said there was a danger the two sides will dig in on trade sanctions, without a clear strategy for resuming negotiations.

China's tariff list is heavy on agricultural goods such as soybeans, sorghum and cotton, threatening US farmers in states that backed Trump in the 2016 USA election, such as Texas and Iowa.

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