FX.co ★ China Stocks Slip Ahead of New US Tariffs

On Monday, the Shanghai Composite Index dipped by 0.2% to fall below 3,345, and the Shenzhen Component suffered a 0.9% decline, settling at 10,510. This movement extends the downward trend from the previous trading session, as investors remain wary of new U.S. tariffs scheduled to come into force this week. Over the weekend, President Donald Trump remarked that he is indifferent to potential price hikes by foreign automakers as a reaction to these tariffs. Additionally, The Wall Street Journal revealed that Trump is urging his advisors to adopt a more assertive stance regarding trade policies. On a brighter note, recent data indicated that China's manufacturing activity in March expanded at its fastest rate in a year, with growth in the services sector reaching a three-month peak. The latest Purchasing Managers' Index (PMI) figures suggest that Beijing's stimulus efforts are bolstering economic recovery. However, persistent challenges such as weak domestic consumption and ongoing global trade tensions continue to pose significant risks. Furthermore, stocks in high-growth technology and the new energy sectors were among the most affected by the decline.