China defends trade record, promises more opening

China defends trade record, promises more opening

ENERGY: Oil futures settled down after rallying on a report that showed U.S oil inventories dropping more sharply last week. Australia's S&P/ASX 200 added 0.2 percent to 6,209.70.

The Asian stock market was under pressure on Wednesday as extended losses in Chinese stocks and in the yuan sent waves across the region. Its emerging market index hit its weakest level since mid-August.

"Chinese stocks have already slid into bear market territory". The yield has been confined to a 15-basis-point range in June after fluctuating by almost 40 basis points in May, when it touched a seven-year high of 3.128 percent. But the gains evaporated after Larry Kudlow, Trump's top economic adviser, said in an interview with Fox Business that it should not necessarily be viewed as a softer stance.

The impact would be big if these challenges could not be settled, as the WTO is playing a critical role in global trade liberalization and facilitation, said Wang.

"The change was decided upon as unilateralism and trade protectionism are on the rise and tensions appear in the trade relations among global economies", the state-run China Daily said, referring to the looming US-China trade war.

The yuan weakened 389 basis points to 6.5569 against the US dollar Wednesday, according to the China Foreign Exchange Trade System.

"Initially investors saw Trump's moves as negotiation tactics to get better deals".

Confusion still reigned over US trade policy.

U.S. officials complain the WTO, the Geneva-based arbiter of trade rules, requires an overhaul because it is bureaucratic, rigid and slow to adapt to changing business conditions.

The Global Times said support could be provided to companies like ZTE Corp, China's second-largest telecommunications equipment maker, which ceased major USA operations after the United States imposed a ban in April.

Saudi Arabia 'ready to use spare oil capacity when needed'
The White House later walked back the president's comments, saying the king said his country can raise oil production if needed. The drop is in contrast to the strong growth in oil prices seen last week as prices started to nudge close to $80 per barrel.

US Futures are also pointing lower, with the Nasdaq set to lose 1% at the opening bell.

Historically, the USA economy has tended to enter a recession after the spread had shrunk below zero percent, inverting the yield curve. The contract gained $2.23 to settle at $72.76 per barrel on Wednesday.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 27, 2018.

In currency markets, trade-sensitive currencies including the Australian and New Zealand dollars lost ground while the safe-haven yen found demand.

The dollar was aided in part by recent gains on the Chinese yuan, which had stirred speculation Beijing was weakening its currency to bolster exports.

In the currency market, major currencies were treading water on uncertainties over escalating trade friction.

The euro slipped in European trading, under pressure from the trade conflict, the threat of a political crisis in Germany and uncertainty over a European Union summit.

CURRENCIES: The dollar rose to 109.67 yen from 109.45 in late trading Monday.

The People's Bank of China fixed the yuan midpoint at a six-month low of 6.5569 per dollar on Wednesday.

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