US-China Trade War Escalates Global Market Volatility

Asia-Pacific markets rose on Wednesday despite Wall Street's decline due to a renewed US-China trade feud. The US President criticized China for not buying soybeans, calling it 'an economically hostile act' and threatened 'retribution.' Japan's Nikkei 225 index rose 1.53%, South Korea's Kospi jumped 2.15%, and Australia's ASX/S&P 200 was up 0.85%. China's consumer prices fell more than expected in September, highlighting the impact of sluggish domestic demand and trade worries. The US Federal Reserve Chair suggested that the central bank is nearing a point where it will stop reducing its bond holdings and hinted at more interest rate cuts.

ASML, a Dutch semiconductor equipment giant, reported its Q3 earnings, citing a strong demand driven by AI investments, with orders reaching $6.28 billion. Despite a significant decline in China sales expected in 2026, the company remains optimistic about its technology roadmap and forecasts a 15% annual sales increase this year. ASML's CEO highlighted the potential of AI in creating value in their products and the company's commitment to its technology roadmap. The company's guidance for 2026 was a key factor, as it alleviated some concerns about its growth prospects.

Chinese companies are increasingly listing in Hong Kong instead of the U.S. due to rising tensions between Beijing and Washington, and stricter regulatory requirements in New York. Chinese IPOs in the U.S. have declined 4% year-on-year, raising $875.7 million from 23 deals, while Hong Kong has seen a 164% surge in Chinese IPOs, raising $18.4 billion from 56 listings. Experts attribute the shift to Beijing's tighter control over capital outflows and regulatory preferences for listings in Hong Kong or mainland China.

U.S. stocks had a mixed day as President Donald Trump's threat to impose a cooking oil embargo on China overshadowed positive developments, including major banks beating earnings expectations and Federal Reserve Chair Jerome Powell suggesting a potential halt in monetary policy tightening. Trump's trade brinkmanship caused concern among investors, leading to a 0.2% decline in the S&P 500. Meanwhile, China's consumer price index fell more than expected, and OpenAI announced a policy shift allowing 'erotica' for adults on ChatGPT.

European stocks are expected to open higher on Wednesday, rebounding from a two-week low in the previous trading session. The U.K.'s FTSE index is predicted to open 0.37% higher, Germany's DAX up 0.4%, France's CAC 40 1.72% higher, and Italy's FTSE MIB 0.6% higher. The positive change in sentiment comes after regional stocks touched two-week lows on Tuesday amid the threat of a new trade dispute between the U.S. and China. U.S. President Donald Trump threatened China with a fresh wave of tariff increases and criticized China for not buying soybeans. Meanwhile, France's decision to suspend a controversial pension reform until after the 2027 election was welcomed by the Socialists. Investors will also be watching for news from the IMF and World Bank annual meetings in Washington.

The US stock market experienced a volatile session on Tuesday as traders reacted to the latest developments in the US-China trade war. President Donald Trump threatened China with a cooking oil embargo, causing stocks to fluctuate. The S&P 500 closed down 0.2%, while the Nasdaq Composite fell 0.8%. The Dow Jones Industrial Average rose 0.4%. Investors are now looking forward to corporate earnings reports from major US banks. Despite potential positive earnings, Wall Street veteran Art Hogan believes that stocks will trade sideways due to trade war uncertainty and the US government shutdown.

The article discusses the renewed trade conflict between America and China, with Donald Trump threatening to impose an additional 100% levy on certain goods, particularly rare-earth minerals. China has been one of the few countries to match Trump's threats tit-for-tat until a last-minute truce was reached in the spring. The article highlights the ongoing tensions between the two nations and the potential for further escalation.

The article discusses China's response to Donald Trump's trade actions, suggesting that China is targeting American firms, with its investigation of Qualcomm being a potential example. While Trump appears to act impulsively in his trade dealings with China, Chinese officials are said to deliberate carefully before taking action. The article highlights the contrast between the two countries' approaches to trade conflicts.

The article discusses the current merger and acquisition (M&A) wave in the United States, dubbed the eighth episode since the 1890s. This wave is driven by technological promise, enthusiastic credit markets, willing politicians, and striving bosses. The article draws parallels with previous M&A waves, which were also fueled by similar factors. It highlights that the current wave began this summer and is characterized by an increase in deal-making activity. The article also touches upon the role of Donald Trump in unleashing this M&A bonanza.

The article discusses China's reaction to US President Donald Trump's threat to impose new 100% tariffs, with China vowing to retaliate with countermeasures. The analysis is presented in a video by CNN's Steven Jiang. The article also includes links to other related videos on various topics, including the Gaza ceasefire deal brokered by Trump and the release of Israeli hostages.

China's consumer prices fell 0.3% in September, with factory-gate prices down 2.3%, as the country continues to grapple with deflationary pressures. The decline was larger than expected, and economists say further monetary easing remains an option. Beijing's efforts to curb involution, or cutthroat intra-industry competition, may be showing signs of progress.

Chinese Premier Li Qiang emphasized the need for resilience among China's companies and reiterated the country's commitment to achieving its annual economic goals during a symposium with business leaders and experts. The meeting took place amid ongoing trade tensions with the US and ahead of a crucial Communist Party gathering where China's next five-year plan is expected to be discussed. Li Qiang called for a broader perspective to maintain confidence and address problems directly. Business leaders and academics at the symposium expressed an upbeat tone, noting that China's economy has remained resilient despite challenges.

As China prepares for its fourth plenum and new five-year plan, scholars believe that the escalating US-China trade war could unify the country behind policymakers as they take steps to protect technological development and national security. The trade tensions have reignited less than two weeks before the major political gathering in Beijing, with both sides imposing economic sanctions, export controls, and tariffs. Chinese scholars say that external pressure can foster unity and motivate the country to stay the course without yielding to US pressure.