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BUSINESS Tuesday 27 augusT 2019
A25

US stocks climb amid signs of a thaw in US-China trade war

By ALEX VEIGA war between the world's
Associated Press biggest economies.
Stocks marched broadly The conflict escalated
higher on Wall Street in mid- once again on Friday, af-
day trading Monday after ter China announced new
President Donald Trump tariffs on $75 billion in U.S.
claimed China was willing goods. Trump responded
to reopen talks on the cost- angrily on Twitter, at one
ly trade war that has roiled point saying he "hereby or-
markets and dimmed the dered" U.S. companies with
outlook for global econom- operations in China to con-
ic growth. sider moving them to other
Uncertainty remained high, countries, including the U.S.
however, about the next Trump also later an-
developments in the trade nounced that the U.S.
dispute, which has repeat- would increase existing
edly seen the sides attempt tariffs on $250 billion in Chi-
to negotiate before ending nese goods to 30% from
in acrimony and more tar- 25%, and that new tariffs on
iffs and trade penalties. another $300 billion of im-
Big technology companies, ports would be 15% instead
which do a lot of business of 10%.
in China and have much Stephen Innes, managing
riding on the outcome of This Aug. 23, 2019, file photo shows the New York Stock Exchange in New York. partner at Valour Markets
the trade dispute, rose the Associated Press in Singapore, compared
most. Apple climbed 1.7%. the difficulty of assessing
Health care and communi- headed for another sell-off manager at UBS Wealth and Japan's benchmark the volatile market situation
cations services stocks also until Trump said his trade Management USA. "As an Nikkei 225 closed lower. to reading tea leaves.
contributed to the gains as negotiators had received investor, you just have to Bond prices were little "Nobody understands
the market clawed back two "very good calls" from know there's a lot of uncer- changed. The yield on where the president is com-
some of its heavy losses China on Sunday. China's tainty and there is no clarity the 10-year Treasury held ing from," he said, adding
from last week, which foreign ministry replied, in the short term right now." steady at 1.52%. Oil prices that the best thing Trump
marked its fourth straight however, that it didn't The S&P 500 was up 0.8% as edged lower. can do for market stability
weekly loss. On Friday, the know what Trump was talk- of 12:05 p.m. Eastern Time. Energy services company is to "keep quiet."
Dow Jones Industrial Aver- ing about. The Dow gained 210 points, TechnipFMC led the gain- The market is now dominat-
age plunged more than "It always seems that or 0.8%, to 25,845. The Nas- ers in the S&P 500, climbing ed by fears of a portend-
600 points after Washing- Trump, after he does some- daq rose 0.9%. 5.2%. Gap fell the most, slid- ing U.S. recession, although
ton and Beijing threatened thing to freak the market Major indexes in Germany ing 2.8%. the American economy is
a new round of tariffs on out or escalate this trade and France rose. Markets Stock markets have been actually holding up, and
each other's goods. war, he tries to dial it back in Britain were closed for volatile this summer as trad- much of the U.S. economy
The escalation in the trade to some degree," said Brad a national holiday. In Asia, ers have been whipsawed is made up of consump-
conflict had global markets Bernstein, senior portfolio Hong Kong's Hang Seng by the turns in the trade tion, Innes said. q

German business confidence declines to near 7-year low

By GEIR MOULSON recession in Germany." with healthy employment
Associated Press The survey is based on re- and said "the outlook is par-
BERLIN (AP) — German sponses from some 9,000 ticularly uncertain at the
business confidence has firms and is a leading indi- moment," citing political
fallen for a fifth consecu- cator of the health of the factors such as Brexit and
tive month and hit a nearly economy. international trade con-
seven-year low, a closely The German economy flicts.
watched survey found contracted by 0.1% in the Still, Ifo's latest survey
Monday — adding to April-June period and the showed an across-the-
mounting worries that Eu- country's central bank, board decline in confi-
rope's biggest economy is the Bundesbank, said last dence. In the manufactur-
headed for a recession. week it "could decline ing sector, "the last time
The Ifo institute said its slightly" again in the sum- that industrial companies
monthly confidence index mer. A technical recession demonstrated such pessi-
declined to 94.3 points in is defined as two consecu- mism was in the crisis year
August from 95.8 in July. tive quarters of negative of 2009," Fuest said. He The sun rises next to the European Central Bank at the river Main
Managers' views of the cur- growth. added that "not a single in Frankfurt, Germany, early Thursday, Aug. 22, 2019.
rent situation and the out- Bundesbank President Jens ray of light was to be seen Associated Press
look for the next six months Weidmann warned against in any of Germany's key in-
both worsened. excessive pessimism in a dustries." "It would take some relief year," he said. While signs of
It was the lowest reading weekend newspaper in- ING economist Carsten Brz- from the ongoing trade damage to the domestic
for the index since Novem- terview, saying that he eski said the latest Ifo report conflicts and a general economy are only "tenta-
ber 2012. Ifo's head, Clem- sees "no reason to panic." "suggests the risk of a nega- sentiment improvement to tive so far," he added that
ens Fuest, said "there are He noted that Germany is tive sentiment loop is larger boost industrial activity at they "could easily mutate
ever more indications of a coming off a long upswing than ever." least toward the end of the into severe problems."q