Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
China said on Saturday it strongly opposes Washington's decision to levy additional tariffs on $550 billion worth of Chinese goods and warned the United States of consequences...Politicsread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
The final week of August could be highly volatile as markets fret over the economy and the latest developments in trade wars.Market Insiderread more
Federal Reserve Vice Chair Richard Clarida said Friday that the global economy has deteriorated in the past month.Marketsread more
The latest escalation in the trade war ups the odds the economy will fall into recession and that the Fed will aggressively cut rates.Market Insiderread more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
"We don't need China and, frankly, would be far better off without them," Trump tweeted.Politicsread more
Recent trade friction between the two Asian powerhouses has morphed into a dispute with political implications that go far beyond the region.Asia Politicsread more
"My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?" Trump wrote amid a series of tweets that rattled markets Friday.Politicsread more
The dollar rose against the euro on Wednesday as the single currency was pushed lower by worries about the euro zone economy, while sterling was strong ahead of a no-confidence vote in British Prime Minister Theresa May's government.
The euro was down 0.05 percent against the dollar, last at $1.14, after being compressed earlier in the session to a 12-day trough of $1.138. Earlier this week, data showed Germany barely escaped a recession in the second half of 2018 and European Central Bank chief Mario Draghi warned on Tuesday the euro zone economy was weaker than anticipated.
"The dimmer outlook was acknowledged by outgoing ECB President Mario Draghi, a cautious tone that gave added traction to the euros slide from three-month highs," said Joe Manimbo, senior market analyst at Western Union.
"Add it all up and it seems increasingly less likely that the ECB would be able to normalize monetary policy later this year."
In Britain, May is widely expected to retain power in the confidence motion at 1900 GMT on Wednesday, called by opposition Labour Party leader Jeremy Corbyn after a crushing defeat of the prime minister's Brexit divorce deal in parliament on Tuesday. Defeat of the deal left the country's withdrawal from the European Union in disarray just 10 weeks before it is due to leave.
Although the pound had sunk by more than 1 percent against the dollar early on Tuesday, it rallied after the parliamentary vote on the deal as investors saw the defeat as forcing Britain to pursue different options regarding the EU.
"One thing seems clear - this deal they voted on is now dead, I doubt they can make a few tweaks and salvage it," said Richard Falkenhall, a senior FX strategist at SEB.
"You have to look at alternatives to them: there is no support in parliament for a no-deal Brexit so you end with a softer Brexit, or maybe even a second referendum," he said.
Adam Cole, chief currency strategist at RBC, added that if the Labour Party lost the confidence vote as expected, it could switch its focus to a second referendum on EU membership.
As a consequence, the single currency fell as much as 0.3 percent against the pound in early trade, hitting a seven-week low of 88.44 pence, and was trading at around 88.68 pence by 1:58 p.m. ET, down 0.02 percent on the day.
The dollar eased 0.18 percent to 108.86 after advancing 0.5 percent against its Japanese peer overnight, amid a further ebb in risk aversion with U.S. stocks posting strong gains.