Tags: Financial Markets | Money | china | rally | trade war | avert | wall street

China Blinks: Huge Rally as Trade War Perhaps Averted

Image: China Blinks: Huge Rally as Trade War Perhaps Averted
(Fred Dufour/Getty Images)

By    |   Monday, 26 March 2018 06:56 PM

Following Friday's massive losses on Wall Street amid reports of a trade war between the United States and China, the market bounced back Monday after China signaled it is willing to negotiate better trade deals with the Trump administration.

The Dow Jones (+669.4 points), S&P 500 (+70.29 points), and Nasdaq (+227.88 points) all posted strong gains Monday. The performances are being attributed to calmed fears that the U.S. and China will engage in a trade war to out-do each other's tariffs on imports.

The Dow's point increase was the largest single-day gain since 2008. The Financial Times reported early Monday morning that China is offering to buy more U.S.-made semiconductors to help reduce the $375 billion merchandise trade surplus it has with America.

Gordon Chang, an expert on North Korea and China, told Newsmax TV Americans shouldn't worry about a trade war anyway because it would be a one-sided affair.

"Everyone has been worried about a trade war, but we shouldn't because we hold most of the high cards," Chang said. "And the Chinese really have no way to win a trade war with the United States if they face a determined American president."

Chang noted that a trade war between the two nations has actually been ongoing for several years because "U.S. presidents have not been willing to use U.S. national power to protect American businesses and workers. And I think finally we now have a glimpse of someone in the White House who actually understands that we can prevail on this."

Trump announced tariffs on steel and aluminum imports from China last Thursday, to which China responded by threatening to tax $3 billion worth of U.S. products. That back and forth sparked heavy losses on Wall Street, but China's softening stance on the matter appeared to smooth the tensions and calm investors as the new week began.

National Trade Council Director Peter Navarro told CNBC Monday that President Donald Trump has directed Treasury Secretary Steven Mnuchin and others to talk with the Chinese about reversing the lopsided trade situation.

"We're hopeful that China will work with us to basically address some of these [trade] practices," Navarro said. "I see nothing but bullish signs ahead."

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Following Friday's massive losses on Wall Street amid trade war fears between the United States and China, the market bounced back Monday after China signaled it is willing to negotiate better trade deals for the U.S.
china, rally, trade war, avert, wall street
366
2018-56-26
Monday, 26 March 2018 06:56 PM
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