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Oil prices fell Thursday while global equities were mixed after President Donald Trump said the United States was close to making a deal on Iran’s nuclear program.Trump made the remarks in Qatar before flying to the United Arab Emirates for the third and final leg of a Gulf tour that began in Saudi Arabia.Trump’s comments came after Iran held its fourth round of talks with the US administration. Washington has said it wishes to avoid a threatened military strike by Israel on Tehran’s contested nuclear program.”Traders focused on the prospect of a US-Iran nuclear deal which could see economic sanctions lifted on the latter and potentially lead to greater supplies of oil,” noted Russ Mould, investment director at AJ Bell.Both main crude contracts fell by more than two percent in value on hopes that US sanctions on Iran might be lifted as part of the deal.That could, in turn, increase the Islamic republic’s oil exports.In Europe, the main markets overcame early weakness to finish higher.Sentiment in London was boosted by official data showing Britain’s economy grew more than expected in the first quarter — before UK business tax hikes and US tariffs took effect.Back on Wall Street, both the Dow and S&P 500 rose, while the Nasdaq retreated following mixed US economic data.Data showed US retail sales were near-flat in the United States in April, while US wholesale inflation unexpectedly fell during the month.Shares in Walmart retreated after the retail giant warned of higher prices due to Trump’s tariffs. CEO Doug McMillon welcomed a de-escalation of Washington’s trade war with China but said the levies remained too high for the retailer to absorb.”We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels, we aren’t able to absorb all the pressure,” McMillon told investors.Meanwhile, investors awaited fresh developments in trade talks, with countries looking to reach deals to avoid Trump’s tariff blitz.With excitement from the China-US detente fading, markets are seeking new catalysts.”We’re back into the vacuum where news about trade dominates everything,” said Art Hogan of B. Riley Wealth Management.After tumbling in early April following Trump’s sweeping tariff plan, stocks have been on the upswing in recent weeks as the US president has retreated from some of the most onerous levies while announcing a trade deal with Britain and a de-escalation with China.But Hogan said markets are bracing for a hit to inflation later in 2025 from the overall policy shift to higher tariffs.- Key figures at around 2050 GMT -West Texas Intermediate: DOWN 2.4 percent at $61.62 per barrelBrent North Sea Crude: DOWN 2.4 percent at $64.53 per barrelNew York – Dow: UP 0.7 percent at 42,322.75 (close)New York – S&P 500: UP 0.4 percent at 5,916.93 (close)New York – Nasdaq Composite: DOWN 0.2 percent at 19,112.32 (close)London – FTSE 100: UP 0.6 percent at 8,633.75 (close)Paris – CAC 40: UP 0.2 percent at 7,853.47 (close)Frankfurt – DAX: UP 0.7 percent at 23,695.59 (close)Tokyo – Nikkei 225: DOWN 1.0 percent at 37,755.51 (close)Hong Kong – Hang Seng Index: DOWN 0.8 percent at 23,453.16 (close)Shanghai – Composite: DOWN 0.7 percent at 3,380.82 (close)Euro/dollar: UP at $1.1185 from $1.1175 on WednesdayPound/dollar: UP at $1.3304 from $1.3263Dollar/yen: DOWN at 145.65 yen from 146.75 yenEuro/pound: DOWN at 84.07 from 84.23 penceburs-jmb/acb

Oil prices tumbled on Thursday after President Donald Trump said the United States was close to making a deal on Iran’s nuclear programme, which could pave the way for increased crude supplies.The dollar continued to face pressure amid uncertainty over tariffs, while European and US markets were mostly higher.”Traders focused on the prospect of a US-Iran nuclear deal which could see economic sanctions lifted on the latter and potentially lead to greater supplies of oil,” noted Russ Mould, investment director at AJ Bell.Trump’s remarks came after Iran held its fourth round of talks with the US administration, which has said it wishes to avoid a threatened military strike by Israel on Tehran’s contested nuclear programme.Both main crude contracts plunged more than three percent in value on hopes that US sanctions on Iran might be lifted as part of the deal.That could, in turn, increase the Islamic republic’s oil exports.In Europe, the main markets overcame early weakness to finish higher.Sentiment in London was boosted by official data showing Britain’s economy grew more than expected in the first quarter — before UK business tax hikes and US tariffs took effect.Wall Street’s three main indices opened lower following a warning by Walmart of price hikes due to US tariffs that dampened sentiment, with the Dow shedding 0.4 percent.But the Dow and S&P pushed higher during midday trading.Shares in Walmart slumped five percent after the company reported first quarter revenue growth of 2.5 percent that narrowly missed analyst expectations, but cut their losses in morning trading.Profits came in at $4.5 billion, down 12.1 percent from the year-ago level but topping analyst expectations.However Walmart’s CEO warned of higher prices due to tariffs, welcoming a de-escalation of US President Donald Trump’s trade war with China but saying the levies remain too high for the retailer to absorb.”We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels, we aren’t able to absorb all the pressure,” Chief Executive Doug McMillon told investors.Meanwhile, investors awaited fresh developments in trade talks, with countries looking to reach deals to avoid Trump’s tariff blitz.With excitement from the China-US detente fading, markets are seeking new catalysts.Stock markets have surged past the levels seen before Trump’s April 2 “Liberation Day” bombshell that hit countries worldwide with US tariffs.After figures on Tuesday showing US inflation came in a little below forecasts in April, wholesale price data released on Thursday showed they unexpectedly fell 0.5 in April due largely to a sharp drop in services costs.Briefing.com analyst Patrick O’Hare said the data showed a sharp drop in wholesale machinery and vehicle sales.”That suggests wholesalers were likely absorbing some tariff impacts, which is good for the end customer but not necessarily for earnings,” he said.April retail sales, data, also released Thursday, came in nearly flat.The 0.1-percent gain was significantly down from March’s revised growth of 1.7 percent, as buyers earlier sought to get ahead of Trump’s sweeping new tariffs, many of which took effect in April.However, analysts have pointed out that the real impact of tariffs would not be seen until May’s figures are released and warned that there were still plenty of bumps in the road ahead.- Key figures at around 1530 GMT -West Texas Intermediate: DOWN 3.1 percent at $61.18 per barrelBrent North Sea Crude: DOWN 3.0 percent at $64.13 per barrelNew York – Dow: UP 0.2 percent at 42,135.01 pointsNew York – S&P 500: UP 0.1 percent at 5,898.55New York – Nasdaq Composite: DOWN 0.2 percent at 19,102.57London – FTSE 100: UP 0.6 percent at 8,633.75 (close)Paris – CAC 40: UP 0.2 percent at 7,853.47 (close)Frankfurt – DAX: UP 0.7 percent at 23,695.59 (close)Tokyo – Nikkei 225: DOWN 1.0 percent at 37,755.51 (close)Hong Kong – Hang Seng Index: DOWN 0.8 percent at 23,453.16 (close)Shanghai – Composite: DOWN 0.7 percent at 3,380.82 (close)Euro/dollar: UP at $1.1118 from $1.1178 on WednesdayPound/dollar: UP at $1.3281 from $1.3268Dollar/yen: DOWN at 145.81 yen from 146.65 yenEuro/pound: DOWN at 84.20 from 84.21 penceburs-rl/phz

China urged parties involved in Hong Kong conglomerate CK Hutchison’s sale of Panama Canal ports to exercise “caution” Thursday, warning of legal consequences should they proceed without clearance from Beijing.The Hong Kong firm’s attempt to sell most of its port operations to a US-led consortium was first announced in March after weeks of pressure from Donald Trump. The US president has refused to rule out military intervention to “take back” the crucial waterway — which was handed over to Panama in 1999 — from alleged Chinese control. Beijing has criticised the sale of the assets to a group led by giant asset manager BlackRock, opening an investigation into the deal to ensure it is handled lawfully.CK Hutchinson underlined on Monday that “the transaction would never be carried out in any illegal or non-compliant manner”.Asked about the firm’s statement on Thursday, a spokeswoman for China’s commerce ministry said that “all parties to the transaction must not attempt to circumvent the review process in any way”.No deal may be implemented without prior approval, He Yongqian said at a regular press conference, warning of “legal liability” in the event of proceeding without authorisation.”It is hoped that the companies involved will maintain a clear understanding of this and proceed with caution,” said He.The business empire built by Hong Kong billionaire Li Ka-shing is registered in the Cayman Islands and the assets being sold are all outside China.Beijing’s next moves in scrutinising CK Hutchison may also have far-reaching implications on Hong Kong and its role as China’s business gateway to the world, analysts told AFP.

Internet giant Alibaba posted on Thursday a six percent increase in annual revenue, the latest positive sign for China’s tech sector despite persisting economic uncertainties.The Hangzhou-based company is one of the biggest players in China’s tech industry, with operations spanning retail, digital payment, artificial intelligence and entertainment.This year has seen its share price rollercoaster on a wave of investor enthusiasm about Chinese AI capabilities that began in January, followed by a steep drop last month triggered by US President Donald Trump’s global trade blitz.The firm’s revenue during the fiscal year ended March 31 totalled 996.3 billion yuan ($138.2 billion), according to results posted to the Hong Kong Stock Exchange, up six percent from the previous twelve-month period.Net income attributable to ordinary shareholders rose to 129.5 billion yuan, the statement showed, a jump of 62 percent year-on-year according to AFP calculations.In the final quarter alone, Alibaba saw revenue of 236.5 billion yuan, narrowly coming up short of a Bloomberg forecast.Net income attributable to ordinary shareholders during the quarter reached 12.4 billion yuan, surging 279 percent from the low base of 3.3 billion yuan recorded during the same period last year.”Our results this quarter and for the full fiscal year demonstrate the ongoing effectiveness of our ‘user first, AI-driven’ strategy, with core business growth continuing to accelerate,” said CEO Eddie Wu in a statement.The growth is another positive sign for China’s tech sector, which has garnered revamped interest from investors since the shock release in January of advanced AI chatbot DeepSeek — apparently developed for a fraction of the cost thought necessary.Alibaba and fellow tech giants Tencent and Baidu are now funnelling large sums in a new race to develop and integrate the most cutting-edge AI applications.

Unfounded online rumours warning that a huge earthquake will soon strike Japan are taking a toll on travel firms and airlines who report less demand from worried Hong Kongers.People from Hong Kong made nearly 2.7 million trips to Japan in 2024.Although it is impossible to know exactly when earthquakes will hit, fear-inducing predictions have spread widely among the city’s residents.Some of the false posts cite a Japanese manga comic, republished in 2021, which predicts a major natural disaster in July 2025 — based on the author’s dream.Other posts give different dates, while a Facebook group that claims to predict disasters in Japan has over a quarter of a million members, mainly in Hong Kong and Taiwan.”The earthquake prophecy has absolutely caused a big change to our customers’ preferences,” said Frankie Chow, head of Hong Kong travel agency CLS Holiday.Chow told AFP that in March and April his company received 70-80 percent fewer inquiries about travelling to Japan than last year.”I’ve never experienced this before,” said Chow, who also runs the booking website Flyagain.la.While some people changed their destination, others “did not dare to travel”, he said.Mild to moderate earthquakes are common in Japan, where strict building codes minimise damage, even from larger shakes.But the nation is no stranger to major disasters, including in 2011 when a magnitude-9.0 quake triggered a tsunami that left 18,500 people dead or missing and caused a devastating meltdown at the Fukushima nuclear plant.Earthquakes are very rarely felt in Hong Kong, but some people are easily spooked by disinformation, Chow said.- ‘Megaquake’ warning -Last month, Tokyo’s Cabinet Office said on social media platform X: “Predicting earthquakes by date, time and place is not possible based on current scientific knowledge.”A Cabinet Office official told AFP that the X post was part of its usual information-sharing about earthquakes.But Japan’s Asahi Shimbun daily reported that it was responding to prophecies that sprung up online after a Japanese government panel in January released a new estimate for the probability of a “megaquake”.The panel said the chance of a massive earthquake along the undersea Nankai Trough south of Japan in the next three decades had marginally increased to 75-82 percent.This was followed by a new damage estimate in March from the Cabinet Office, which said a Nankai Trough megaquake and tsunami could cause 298,000 deaths in Japan.Despite being a routine update of a previous 2014 figure, the estimate appears to have fanned tourists’ fears.A YouTube video featuring a feng shui master urging viewers not to visit Japan, published by local media outlet HK01, has been viewed more than 100,000 times.Don Hon, one of Hong Kong’s 7.5 million residents, does not entirely believe the online claims, but has still been influenced by them.”I will just take it as a precaution, and won’t make any particular plans to travel to Japan,” the 32-year-old social worker said.And if a friend were to ask him to visit Japan in July, Hon “might suggest going somewhere else”.- ‘No reason to worry’ -Hong Kong-based Greater Bay Airlines has reduced flights to Japan’s southern Tokushima region, a local tourism official told AFP.”The company told us demand has rapidly decreased amid rumours there will be a big quake and tsunami in Japan this summer,” she said.”Three scheduled weekly round-trip flights will be reduced to two round-trips per week from May 12 to October 25.”The airline is also reducing its flights to Sendai in the northern region of Miyagi.”There’s no reason to worry,” Miyagi’s governor Yoshihiro Murai reassured travellers, adding that Japanese people are not fleeing.But “if unscientific rumours on social media are impacting tourism, that would be a major problem”, he said last month.According to the Japan National Tourism Organization, the number of Hong Kong visitors in March stood at 208,400 — down nearly 10 percent year-on-year.However, this decline was partly due to the Easter holidays starting in mid-April this year, instead of March, they said.Hong Kong-based EGL Tours has not seen a massive decline in customers travelling to Japan, its executive director Steve Huen Kwok-chuen said.But recent bookings at its two hotels in Japan show fewer from Hong Kong guests, while the number from other global destinations remains stable.In any case, in the likely event that the predictions do not come to pass, “people will realise it’s not true”, he said.burs-nf/kaf/tc/sco

Taiwan will turn off its last nuclear reactor on Saturday, fuelling concerns over the self-ruled island’s reliance on imported energy and vulnerability to a Chinese blockade.The island, which targets net-zero emissions by 2050, depends almost entirely on imported fossil fuel to power its homes, factories and critical semiconductor chip industry.President Lai Ching-te’s Democratic Progressive Party has long vowed to phase out nuclear power, while the main opposition Kuomintang (KMT) party says continued supply is needed for energy security.Ma’anshan Nuclear Power Plant in southern Pingtung county is being closed as China intensifies military activity around Taiwan, which Beijing claims as part of its territory and has vowed to bring under its control one day. During large-scale military drills around Taiwan in April, China simulated strikes on key ports and energy sites as well as blockading the island.Ma’anshan has operated for 40 years in a region popular with tourists and which is now dotted with wind turbines and solar panels.More renewable energy is planned at the site, where state-owned Taipower plans to build a solar power station capable of supplying an estimated 15,000 households annually.But while nuclear only accounted for 4.2 percent of Taiwan’s power supply last year, some fear Ma’anshan’s closure risks an energy crunch.”Taiwan is such a small place and currently there’s no other better and more efficient natural energy source that can replace nuclear power,” said Ricky Hsiao, 41, who runs a nearby guesthouse.”The reality is that TSMC and other big companies need a lot of electricity. They would leave Taiwan if it’s not stable,” he told AFP, referring to chipmaking giant Taiwan Semiconductor Manufacturing Company.But mother-of-two Carey Chen fears an accident like the 2011 Fukushima nuclear meltdown in Japan, which like Taiwan is prone to earthquakes.”If we can find other stable power sources, I support a nuclear-free homeland for everyone’s safety,” Chen, 40, told AFP.- Stable supply – At its peak in the 1980s, nuclear power made up more than 50 percent of Taiwan’s energy generation, with three plants operating six reactors across the island. Concerns after the Fukushima disaster sawa new plant mothballed in 2014 before it was even finished.And two plants stopped operating between 2018 and 2023 after their operating permits expired.Most of Taiwan’s power is fossil fuel-based, with liquefied natural gas (LNG) accounting for 42.4 percent and coal 39.3 percent last year.Renewable energy made up 11.6 percent, well short of the government’s target of 20 percent by 2025.Solar has faced opposition from communities worried about panels occupying valuable land, while rules requiring locally made parts in wind turbines have slowed their deployment.Lai insists Taiwan’s energy supply will be stable even as AI technology boosts demand, with new units in existing LNG and coal-fired plants replacing Ma’anshan’s output.The KMT and Taiwan People’s Party, which control the parliament, amended a law on Tuesday enabling nuclear plants to extend their operating life by up to 20 years.”Nuclear power is not the most perfect way to generate electricity,” KMT lawmaker Ko Ju-chun told AFP.”But it is an option that should not be eliminated when we are developing technology, defence, and strengthening national security.”- Chinese threat -Taiwan’s reliance on imported fossil fuels is of particular concern given the risk of a Chinese blockade.The island has enough LNG and coal reserves to last just 11 and 30 days, respectively, government data show.Taiwan’s centralised electricity grid also leaves swaths of the island at risk of major power outages in case of a single fault. Without nuclear, “our energy security cannot be guaranteed, and national security will be affected”, said Yeh Tsung-kuang, an energy expert at Taiwan’s National Tsing Hua University.Environmental activists argue renewables are the best way to bolster Taiwan’s energy resilience.”If every community has solar panels on its roofs, the community can be (more) self-sufficient”, said Tsui Shu-hsin, secretary-general of Green Citizens’ Action Alliance.But others note Taiwan’s break-up with nuclear is at odds with global and regional trends.Even Japan aims for nuclear to account for 20-22 percent of its electricity by 2030, up from well under 10 percent now.And nuclear power became South Korea’s largest source of electricity in 2024, accounting for 31.7 percent of the country’s total power generation, and reaching its highest level in 18 years, according to government data.Yu Shih-ching, chief of Hengchun town where Ma’anshan is located, said the plant had brought jobs and boosted the local economy.”Our view is that nuclear power is necessary,” he told AFP, calling it “an important driving force for the national economy” and a “great help to local areas”.And Lai acknowledged recently he would not rule out a return to nuclear one day.”Whether or not we will use nuclear power in the future depends on three foundations which include nuclear safety, a solution to nuclear waste, and successful social dialogue,” he said.

Equities stuttered Thursday as investors await fresh developments in trade talks, with US partners looking to reach deals to avoid Donald Trump’s tariff blitz, while oil extended losses on hopes for an Iran nuclear deal.With excitement from the China-US detente running out of legs, the search is on for fresh catalysts to drive a rally that has pushed markets back above the levels seen before US President Trump’s April 2 “Liberation Day” bombshell.News that Beijing was suspending some non-tariff countermeasures on US entities for 90 days following the superpowers’ weekend truce did little to inject much more enthusiasm.With the tariffs crisis calmed for now, dealers can turn their attention to hard economic data, hoping for an idea about the initial impact of Washington’s trade policies.After figures Tuesday showing US inflation came in a little below forecasts in April, eyes are on wholesale prices and retail sales due later Thursday, as well as earnings from retail giant Walmart.However, analysts pointed out that the real impact would not be seen until May’s figures are released and warned that there were still plenty of bumps in the road ahead.”The trade truce may hold for now, but the tariffs announced — many still around 30 percent — are not disappearing,” said Charu Chanana, chief investment strategist at Saxo.”These are ‘sticky’ policies that can reshape supply chains, corporate margins, and even inflation. In fact, the market is now preparing for a second shock: weaker economic and earnings data in the third quarter as tariffs bite.”She added that “the muted market reaction the day after the truce suggests investors may be digesting the idea that ‘the best news may already be out'”.While Wall Street enjoyed a broadly positive day, with the S&P and Nasdaq up but the Dow down, Asia largely reversed.Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Manila were all down.Oil prices sank around two percent on signs that Iran could agree to certain US demands to reach a nuclear deal.An adviser to supreme leader Ayatollah Ali Khamenei said Wednesday that Tehran could accept far-reaching curbs on its atomic programme in exchange for sanctions relief, according to NBC News.Ali Shamkhani said in an interview that his country could agree to never develop nuclear weapons, give up stockpiles of highly enriched uranium and allow inspectors to nuclear sites — among other steps — if economic sanctions were lifted, NBC said.The commodity had already dropped Wednesday on bets that demand would increase as tensions between China and the United States ease and the tariffs are wound back.- Key figures at around 0200 GMT -Tokyo – Nikkei 225: DOWN 1.2 percent at 37,670.38Hong Kong – Hang Seng Index: DOWN 0.5 percent at 23,518.02Shanghai – Composite: DOWN 0.2 percent at 3,397.09Euro/dollar: UP at $1.1198 from $1.1178 on WednesdayPound/dollar: UP at $1.3281 from $1.3268Dollar/yen: DOWN at 146.19 yen from 146.65 yenEuro/pound: UP at 84.31 pence from 84.21 penceWest Texas Intermediate: DOWN 2.0 percent at $61.88 per barrelBrent North Sea Crude: DOWN 1.9 percent at $64.89 per barrelNew York – Dow: DOWN 0.2 percent at 42,051.06 (close)London – FTSE 100: DOWN 0.2 percent at 8,585.01 (close)

Global stocks were mixed Wednesday as euphoria over easing US-China trade tensions petered out while markets looked ahead to key US economic data.While the April volatility stemming from President Donald Trump’s tariff blitz appears to have halted, analysts warned that Washington still needed to reach trade deals with countries to instil a sense of stability.The S&P 500 finished narrowly positive after a meandering session while the Nasdaq advanced and the Dow retreated modestly.Markets are looking ahead to reports Thursday on US wholesale prices and retail sales for April, as well as earnings from retail behemoth Walmart.In a further boost for the US-China trade truce, Beijing said Wednesday it was suspending some non-tariff countermeasures on US entities for 90 days.But the market relief that followed news of a de-escalation in the US-China trade war at high-level talks over the weekend looked to have run its course.”After a powerful rally to start the week, the stock markets are consolidating,” said Fawad Razaqzada, market analyst at City Index and FOREX.com.In Europe, the Paris, Frankfurt and London stock markets all closed lower.Chinese indices closed with sizeable gains on rallies for tech stocks.The Hong Kong stock market jumped more than two percent.After Asian markets closed, Chinese internet giant Tencent reported a better-than-expected increase in revenue for the first quarter, propelled by growth in gaming.Tech darling Nvidia meanwhile extended its gains Wednesday, trading up 4.2 percent after adding nearly six percent Tuesday.That comes after Trump unveiled agreements Tuesday with Saudi Arabia on a visit to the Gulf, including a huge chip deal for Nvidia and Advanced Micro Devices.”The key theme for global stocks this week is the resurgence of big tech,” said Kathleen Brooks, research director at traders XTB.”So far this week, the Magnificent 7 (of blue-chip tech stocks) is outperforming the overall S&P 500… as the US improves its trading partnerships with key nations and President Trump sells Nvidia chips to leaders of the Middle East.”Boeing shares also climbed after Trump announced in Doha what he called a record Qatar Airways order. Under a deal announced by Trump, Qatar Airways will acquire up to 210 Boeing 787 Dreamliner and 777X aircraft.Tokyo ended in the red, even as electronics titan Sony surged 3.7 percent as it announced a record annual profit.However, Sony did warn that profits could fall in this financial year and said it was hoping to manage the impact of Trump’s tariffs.In other company news, Burberry shares soared 17 percent after the British luxury fashion group announced more cost-saving measures, putting one-fifth of its workforce at risk, to help curb losses.French train maker Alstom shares plunged 17 percent as its financial target disappointed investors, despite reporting a return to profit last year.Oil prices retreated after enjoying a four-day rally on demand optimism and Trump’s warnings to Iran over a nuclear deal.- Key figures at around 2100 GMT -New York – Dow: DOWN 0.2 percent at 42,051.06 (close)New York – S&P 500: UP 0.1 percent at 5,892.58 (close)New York – Nasdaq Composite: UP 0.7 percent at 19,146.81 (close)London – FTSE 100: DOWN 0.2 percent at 8,585.01 (close)Paris – CAC 40: DOWN 0.5 percent at 7,836.79 (close)Frankfurt – DAX: DOWN 0.5 percent at 23,527.01 (close)Tokyo – Nikkei 225: DOWN 0.1 percent at 38,128.13 (close)Hong Kong – Hang Seng Index: UP 2.3 percent at 23,640.65 (close)Shanghai – Composite: UP 0.9 percent at 3,403.95 (close)Euro/dollar: DOWN at $1.1178 from $1.1185 on TuesdayPound/dollar: DOWN at $1.3268 from $1.3306Dollar/yen: DOWN at 146.65 yen from 147.48 yenEuro/pound: UP at 84.21 pence from 84.06 penceWest Texas Intermediate: DOWN 0.8 percent at $63.15 per barrelBrent North Sea Crude: DOWN 0.8 percent at $66.09 per barrelburs-jmb/dw

The United States and China slashed sweeping tariffs on each others’ goods for 90 days on Wednesday, marking a temporary de-escalation in a brutal trade war that roiled global markets and international supply chains.Washington and Beijing agreed to drastically lower sky-high tariffs in a deal that emerged from pivotal talks at the weekend in Geneva.US President Donald Trump said Washington now had the blueprint for a “very, very strong” trade deal with China that would see Beijing’s economy “open up” to US businesses, in an interview broadcast Tuesday on Fox News.”We have the confines of a very, very strong deal with China. But the most exciting part of the deal … that’s the opening up of China to US business,” he told the US broadcaster while aboard Air Force One on the way to the start of his Gulf tour.”One of the things I think that could be most exciting for us and also for China, is that we’re trying to open up China,” he added, without elaborating.Trump had upended international commerce with his sweeping tariffs across economies, and China has been especially hard hit. Unwilling to budge, Beijing responded with retaliatory levies that brought new tariffs on both sides well over 100 percent.After billions were wiped off equities and with businesses ailing, negotiations finally got underway at the weekend in Geneva between the world’s trade superpowers to find a way out of the impasse. Under the deal, the United States agreed to lower its new tariffs on Chinese goods to 30 percent while China will reduce its own to 10 percent — down by over 100 percentage points.- ‘No winners’ -The reductions came into effect just after midnight Washington time (0401 GMT) on Wednesday, a major de-escalation in trade tensions that saw US tariffs on Chinese imports soar to up to 145 percent and even as high as 245 percent on some products.Washington also lowered duties on low-value imports from China that hit e-commerce platforms like Shein and Temu.Under Trump’s order, such small parcels would be hit by duties of 54 percent of their value — down from 120 percent — or a $100 payment.China said Wednesday it was suspending certain non-tariff countermeasures too.Beijing’s commerce ministry said it was halting for 90 days measures that put 28 US entities on an “export control list” that bars firms from receiving items that could be used for both civilian and military purposes.The ministry added in a separate statement that it was pausing measures which added 17 US entities to an “unreliable entity list”. Companies on the list are prohibited from import and export activities or making new investments in China.The suspension for 11 entities added on April 4 applies for 90 days, while the ministry did not specify the length of suspension for six others added on April 9.Markets have rallied in the glow of the China-US tariff suspension.Chinese officials have pitched themselves at a summit in Beijing with Latin American leaders this week as a stable partner and defender of globalisation.”There are no winners in tariff wars or trade wars,” Chinese President Xi Jinping told leaders including Brazil’s Luiz Inacio Lula da Silva. His top diplomat Wang Yi swiped at a “major power” that believed “might makes right”.- ‘Risk of renewed escalation’ -Deep sources of tension remain — the US additional tariff rate is higher than China’s because it includes a 20 percent levy over Trump’s complaints about Chinese exports of chemicals used to make fentanyl.Washington has long accused Beijing of turning a blind eye to the fentanyl trade, something China denies.Analysts warn that the possibility of tariffs returning after 90 days simply piles on more uncertainty.”Further tariff reductions will be difficult and the risk of renewed escalation persists,” Yue Su, principal economist at The Economist Intelligence Unit, told AFP.Trump’s rollercoaster tariff row with Beijing has wreaked havoc on US companies that rely on Chinese manufacturing, with the temporary de-escalation only expected to partially calm the storm.And Beijing officials have admitted that China’s economy — already ailing from a protracted property crisis and sluggish consumer spending — is likewise being affected by trade uncertainty.bur-oho-mya-bys/st