China announces new tariff waivers | Calamatta Cuschieri

Markets summary

The Maltese market closed in the red on Monday with the MSE total index ending the session 0.690% lower at 8,308.514 points. None of the stocks had a positive performance, while the biggest fall was seen from Malta International Airport plc with a 4.00% drop to close at 4.80. Followed by 1.96% skid of HSBC Bank Malta plc with a closing price of 1.00. Lombard Bank Malta plc and PG plc were down 1.90% and 1.60% to close at 2.06 and 1.85 respectively.

European stocks started the week lower as some investors questioned the apparent disconnect between stocks and the economy, even as they monitored the latest news on the pandemic front. By the end of trading, the German Dax was down 0.73% to 10,824.99, alongside a 1.31% fall for the French Cac-40 to 4,490.22, while the FTSE Mibtel had dipped 0.33% to 17,381.36.

US equities closed mixed on Monday as investors weighed the benefits of reopening economies and returning to pre-virus norms. By the end of trading the Dow Jones Industrial Average was down 0.45% at 24,221.99 and the S&P 500 was 0.01% up to 2,930.19, while the Nasdaq Composite saw out the session 0.78% stronger at 9.192.34.

China announces new tariff waivers for some U.S. imports

China announced a new list of 79 U.S. products eligible for waivers from retaliatory tariffs imposed at the height of the bilateral trade war, amid continued pressure on Beijing to boost imports from the United States.

China’s finance ministry said in a statement the new waivers will take effect on May 19 and expire on May 18, 2021. The latest list waives tariffs on products including ores of rare earth metals, gold ores, silver ores and concentrates.

Beijing and Washington’s top trade negotiators held a call last week and discussed implementation of the Phase 1 deal signed in January. Under the deal, China agreed to increase its purchases of U.S. goods from a 2017 baseline by $200 billion over two years, with about $77 billion in increased purchases in the first year and $123 billion in the second year.

Renewed tensions between the two countries, sparked by the COVID-19 pandemic that began in China late last year, are also raising questions about the trade truce.

U.S. President Donald Trump has threatened to terminate the deal if China fails to meet its purchase commitments.

 

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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