U.S President Donald Trump said the trade deal with China may be delayed. As a result, stocks in Asia traded low. Australian shares, which experienced a growth in its economy in September, also experienced losses in major markets. Similarly Japan, South Korea and Mainland Chinese stocks tumbled down marginally.
Investors were anticipating a breakthrough in the trade deal between China and US by December 15 when additional tariffs on Chinese exports to US were expected. With no deadline for the trade deal set, companies are playing safe with their assets while keeping a close watch on the outcome.
Australian and US markets had been trading near record highs before Donald Trump’s comments on global trade disputes. European markets closed mixed with London’s FTSE dropping 1.8 per cent, but Germany’s DAX lifting by a slight 0.2 per cent.