The Malta Independent 26 May 2019, Sunday

China hits back at US claim it reneged on trade talks

Wednesday, 15 May 2019, 13:40 Last update: about 10 days ago

The Maltese market closed in the green on Tuesday, with MSE Equity Total Return Index ending the session 0.113% higher, to 9,608.169 points. Best performer was Simonds Farsons Cisk plc by adding 2.16% to close at 9.45, followed by BMIT Technologies plc and International Hotel Investments plc which rose 1.89% and 1.28% to close at 0.54 and 0.79 respectively. The biggest fall was seen from Malita Investments plc. It shed 1.76% to close at 0.835, followed by Malta International Airport plc and Tigne Mall plc, which fell 1.43% and 0.54% to close at 6.9 and 0.92 respectively. Bank of Valletta plc, HSBC Bank Malta plc and RS2 Software plc were active but closed unchanged.

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European shares gained on Tuesday, recovering most of the previous session’s losses, as optimistic comments from Washington and Beijing helped sooth investors’ fears about the top two economies’ intensifying trade spat. Italian stocks declined 0.7% to lead European stocks lower while France’s benchmark slipped 0.4%. Data confirming that Germany’s economy had returned to growth in the first quarter cushioned the DAX which eased 0.2%. London’s FTSE rose 0.2%.

U.S. stocks closed higher Tuesday as the market regained some of its bullish form, a day after a sharp escalation in U.S.-China trade tensions triggered the worst session for major indexes since early January. The Dow Jones Industrial Average added 0.8%, to 25,532.05. The S&P 500 index rose 0.8%, to 2,834.41, and the Nasdaq Composite Index gained 1.1%, to 7,734.49.

Beijing says Washington changed terms on deal to buy more goods midway through discussions

China has struck back at US accusations that it reneged on trade commitments, saying it was Washington that repeatedly tried to change the terms of the negotiations midway through the talks.

In its first detailed explanation of the failure of the discussions, China’s foreign ministry on Tuesday accused Washington of trying to force Beijing to suddenly increase the volume of goods it was willing to buy from the US as part of an agreement, violating terms struck in December.

Washington launched the latest salvo in the dispute on Friday when it increased duties on $200bn of Chinese imports to 25 per cent and later set in motion a plan to do the same with a further $300bn of goods.

China responded by announcing on Monday it would impose tariffs on $60bn of US imports starting on June 1, sending stocks in the US sharply lower on Monday with the Asia-Pacific indices following suit a day later.

The foreign ministry spokesman in Beijing on Tuesday said the US had reneged on a joint consensus last May.

 

This article was issued by Nadiia Grech, junior trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website

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