Markets Fade as China Calls Reports of U.S. Tariff Talks ‘Baseless’
Global markets took a hit on Thursday as China pushed back against reports of possible talks to resolve the ongoing trade war with the United States. The Dow Jones Industrial Average fell more than 200 points, while the S&P 500 and Nasdaq also saw losses.
The sell-off came after China’s Ministry of Commerce said that recent reports of U.S. officials reaching out to Beijing to restart trade talks were “not accurate” and “baseless.” The ministry’s statement dashed hopes of a potential breakthrough in the trade dispute that has been weighing on global economic growth for months.
Investors had been cautiously optimistic earlier in the week after reports emerged that U.S. Treasury Secretary Steven Mnuchin had extended an invitation to Chinese officials to meet for talks. However, China’s denial of any such communication sent ripples through the markets, causing investors to retreat from riskier assets.
The trade war between the world’s two largest economies has escalated in recent months, with both countries imposing tariffs on billions of dollars worth of each other’s goods. The uncertainty surrounding the trade dispute has created volatility in financial markets and raised concerns about its impact on global growth.
The latest developments have once again highlighted the fragile nature of the trade negotiations between the U.S. and China. Both sides have been engaged in a tit-for-tat battle of tariffs, with no clear resolution in sight. The lack of progress in the talks has left investors on edge, unsure of how the situation will ultimately play out.
As markets continue to react to the latest twists and turns in the trade war, investors are likely to remain cautious. The uncertainty surrounding the negotiations has created a sense of unease among market participants, who are bracing for further volatility in the weeks ahead.
While both the U.S. and China have expressed a willingness to negotiate a resolution to the trade dispute, the latest setback underscores the challenges facing both sides in reaching a comprehensive agreement. Until a concrete deal is reached, markets are likely to remain on edge, with any developments in the trade war likely to have a significant impact on global economic growth.