USA eyes more China tariffs if Trump-Xi meeting fails

USA eyes more China tariffs if Trump-Xi meeting fails

USA eyes more China tariffs if Trump-Xi meeting fails

The rally helped turn both the S&P 500 and the Dow Jones Industrial Average once again positive for the year, though each is up less than 1 percent since the beginning of January.

US President Donald Trump has said he thinks his administration can strike "a great deal" with China on trade, but warned of imposing new tariffs on Chinese products if the agreement could not be reached.

A person familiar with the U.S. administration's tariff deliberations told Reuters news agency there could soon be movement towards a new round of tariffs, adding that "the wheels are turning" in that direction.

Other members of the so-called FAANG group also sold off. Apple shed 1.9 percent while Facebook gave up 2.3 percent. Bulls remain on the back foot, with early gains Monday fueled by speculation stocks had gotten cheap during the sell-off wiped out in afternoon trading.

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.

The Russell 2000 index of smaller-company stocks slipped 6.51 points, or 0.4 percent, to 1,447.31.

Fehr said the fundamental backdrop for the market, including improved corporate earnings, the economy and interest rates, remain positive.

The S&P 500 index fell 17.44 points, or 0.7 percent, to 2,641.25.

The pan-European STOXX 600 index lost 0.14 per cent. 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. dropped another 6.3 percent to $1,538.88.

The Bloomberg report sent stocks lower on Monday afternoon. Trump has also threatened to impose tariffs on the remaining goods imports from China, which a year ago were worth $505 billion.

"We talked about a prospective trade war". Trade-sensitive industrial shares rose almost 1.2 per cent in mid-morning trading.

Bond prices slipped. The yield on the 10-year Treasury note rose to 3.08% from 3.07%. Brent crude, used to price global oils, fell 0.4% to $77.34 a barrel in London. The MSCI All-Country World Index has dropped more than 8 percent in October, poised to post the worst monthly performance since May 2012. Heating oil fell 0.8% to $2.28 a gallon. Copper was little changed at $2.74 a pound.The dollar rose to 112.35 yen from 111.85 yen. The euro fell as Germany's Angela Merkel said she will quit as head of her party after almost two decades, though she intends to see out her term as chancellor.

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