The trade war between the United States and China is reportedly heating up, despite announcements last week that a tentative solution has been found. According to the Wall Street Journal, China is allegedly trying to onboard other countries against the U.S. China is reportedly seeking trade allies in Europe and Asia by offering more open access to its markets.
China’s supposed actions came in direct response to the White House’s announcement on Tuesday that it would be submitting a final list of tariffs by June 15. The list will include $50 billion of imports that will face a 25 percent tariff. The White House is also expected to release new investment restrictions on Chinese acquisitions of U.S. technology by the beginning of July.
Earlier on Thursday China’s commerce ministry announced that U.S.’s actions are against World Trade Organization (WTO) rules, and that it reserved the right to respond appropriately if needed.
Despite the brewing uncertainty, global stock markets headed higher, bolstered by a calming of nerves in Italy after the two anti-establishment parties renewed their efforts to form a coalition. Asian stocks rebounded from two-month lows, with most indexes heading higher on Thursday. Japan’s Nikkei 225 was up 0.73 percent as of 1:29 p.m. HK/SIN, and Hong Kong’s Hang Seng Index was up 0.76 percent. The ASX and the Kospi were up just over .040 percent. The Shanghai Composite was the clear victor in the early afternoon, with a 1.28 percent upswing.
The euro continued to strengthen on Thursday though it took a break from its rally on Wednesday, when it gained 1 percent. The common currency was trading at $1.1672 in the early afternoon. The euro hit a 10-month low of $1.1510 on Tuesday.