Trump expects 'great deal' with China, but more tariffs if not

Global stocks pare gains as investors remain cautiousMore

Global stocks pare gains as investors remain cautiousMore

According to the Bloomberg report, the new list would cover the $257 billion worth of Chinese goods not already affected by tariffs and would come into effect by February, following a 60-day public comment period.

WALL STREET: A report the U.S.is preparing to impose tariffs on all imports from China weighed on sentiment.

China and the United States are now engaged in a trade row which was triggered by the USA slapping 25- and 10-percent tariffs on steel and aluminum imports, respectively, from China in April. The euro fell to $1.1390 from $1.1412.Tokyo's Nikkei 225 sank 0.2 percent and Seoul's Kospi lost 1.5 percent.

US-China Business Council senior vice president Erin Ennis said that it would not be a surprise to see Trump move towards announcing more tariffs, given his repeated threats to do so.

"When our relations are at a low ebb, it is always our people who will firmly support the bonds and friendship, and turn the tide of the China-US relations", he said at an event held in Washington by the China General Chamber of Commerce-USA, a non-profit organisation that represents Chinese businesses in the US.

The Nasdaq 100 lost 2 percent and the Dow Jones Industrial Average sank 1 percent. Boeing led declines in the Dow, with a plunge of nearly 6.6 percent. The Shanghai Composite index rebounded 1 percent to 2,568.05 and South Korea's Kospi picked up 0.9 percent to 2,014.69. Futures for the Dow were up 0.4 percent and the broader S&P 500 futures added 0.5 percent.

The S&P 500, the main benchmark for the USA stock market, has fallen 9.9 percent from its latest record high on September 20. Asian shares were mostly higher on Tuesday as traders took the weaker yuan as a sign that Chinese exports can remain competitive even if a trade dispute with Washington heats up.

China has retaliated with its own tariffs against USA goods, but continues to maintain that there can be no winners in a trade war. The U.S. and China are the world's largest economies and their trade relationship is the world's largest, so the higher taxes on imports could also slow global economic growth and increase inflation.

Germany's DAX rose 1.2% as Volkswagen, Daimler and BMW made big gains.

Brazil's Bovespa rose in morning trading after far-right politician Jair Bolsonaro was elected president, but it later ended down 2.2%. The contract dropped 55 cents to settle at $67.04 a barrel in NY.

Benchmark 10-year notes last fell 4/32 in price to yield 3.1 percent, from 3.087 percent late on Monday. Silver fell 1.8% to $14.44 an ounce.

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