China
Crude oil prices plunged to a fresh four-year low as the US-China trade war escalated. Other economic-growth-sensitive commodities, including iron ore and copper, also slumped in recent sessions amid deteriorating demand outlooks in the world’s largest importer.
The rebuke come after Volodymyr Zelenskyy said his government had evidence of at least 155 Chinese nationals fighting alongside Russia on Ukrainian territory.
European markets jumped following Wall Street’s historic rally and gains in Asian trading. However, analysts question the sustainability of the rebound due to President Trump’s unpredictable tariff policy shifts.
Hegseth’s visit comes amid tensions over US President Donald Trump’s repeated assertions that the United States is being overcharged to use the Panama Canal and that China has influence over its operations.
In response to Trump’s threat of an additional 50% in tariffs, China vowed to “fight to the end” while stepping in to stabilise its stock markets following a sharp plunge. Broader markets rebounded on dip-buying as investors await developments in trade negotiations.
Amid escalating trade war with the US, the EU reached out to China on Tuesday in a telephone exchange between Ursula von der Leyen and Chinese Premier Li Qiang.
The head of the transatlantic military alliance stressed that China’s military build-up and support for Russia’s war of aggression in Ukraine should not be overlooked, as he called on NATO members to work together and assess the issue.
China announced retaliatory tariffs of 34% against the US on Wednesday, a move causing several US stocks to plunge, particularly those of firms with extensive ties to China.
The euro surged to a nearly five-month high against the US dollar following Trump’s tariff announcement. The greenback weakened against most other currencies as US government bond yields slumped on a deteriorating economic outlook. Meanwhile, the reciprocal tariffs rattled küresel markets.
China’s move comes in response to US tariffs, totalling 34% on Chinese goods, announced by Washington this week.