Stocks plummet as investors await trade war’s next move

Stocks plummet as investors await trade war’s next move

Stocks plummeted in the Asian markets on Wednesday for the first time after three trading sessions as investors anxiously awaited new developments in the ongoing U.S.-China trade war.

Treasury yields and crude oil futures also fell slightly as investors sat back anticipating results as U.S. and Chinese negotiators continue to seal a preliminary trade deal. Washington and Beijing have signaled to be pushing hard toward a ‘phase one’ trade agreement that would likely be announced this month.

“We’ve had a good run-up, but there may be some consolidation,” said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors in Sydney.

“The trade war is the biggest reason that global growth has weakened over the past 18 months. We would like to see tariffs scaled back. We’re still waiting for clearer signs of resolution.”