In Today’s Talking Points: U.S. ups China trade war ante; tariffs on $200 billion of goods, Australia: Surprise uptick in housing finance approvals – Westpac, ASX suffers biggest fall since May as US increases tariffs on China.
U.S. ups China trade war ante; tariffs on $200 billion of goods
The Trump Administration has threatened 10 percent tariffs on $200 billion worth of Chinese imports.
China’s commerce ministry said on Wednesday that it was “shocked” and would complain to the World Trade Organisation. It described the US’ actions as “completely unacceptable”. U.S. Trade Representative Robert Lightizer said that the U.S. Administration is responding to unfair practice
Last week, Washington imposed 25 percent tariffs on $34 billion of Chinese imports and Beijing responded with matching U.S. exports to China.
Read more: Yahoo Finance
Australia: Surprise uptick in housing finance approvals – Westpac
Matthew Hassan from Westpac notes that Australian housing finance approvals were firmer than expected in May, with the number of owner occupier loans rising 1.1% in light of the expectations of a 2% decline. The value of investor loans were up 0.1% in the month.
Hassan stated that the result was against the wider “run of play” for housing markets, and that the data suggests that conditions have weakened further through May-June, in particular, auction markets.
Read more: FX Street
ASX suffers biggest fall since May as US increases tariffs on China
The Australian share market fell for a second day in a row amid escalating trade tensions between the US and China.
The S&P/ASX 200 index fell 42.5 points (-0.7%).
Commonwealth Bank fell 0.5%, ANZ closed 0.8% lower, and Macquarie fell 0.4%.
Read more: Sydney Morning Herald