Global financial markets were relatively stable on Tuesday despite China’s response to U.S. tariffs. Mexico and Canada managed to delay the duties’ entry into force by promising to strengthen border security, Reuters reports.
Stock exchanges in the U.S. and Europe mostly rose. Hong Kong’s Hang Seng climbed 2.8%, hitting its highest since December. Mainland Chinese markets remained closed due to Lunar New Year celebrations. Investors are wondering whether Chinese authorities will weaken the yuan to mitigate the effects of tariffs, and await their action on Wednesday.
Ben Leidler of Bradesco BBI, quoted by the portal, noted that the outbreak of a trade war has so far been avoided, but uncertainty remains, also amid threats from the EU.
US tariffs against China went into effect on Tuesday morning, and minutes later Beijing announced it would impose duties on US goods and launch an investigation against Google.
Investors are hoping for talks between Trump and Xi Jinping.
Amid the uncertainty, gold continued to hold at record highs, surpassing $2874 per troy ounce by late afternoon.
