{"id":302576,"date":"2025-10-14T12:13:16","date_gmt":"2025-10-14T12:13:16","guid":{"rendered":"https:\/\/www.europesays.com\/us\/302576\/"},"modified":"2025-10-14T12:13:16","modified_gmt":"2025-10-14T12:13:16","slug":"global-stock-markets-tumble-as-beijing-imposes-new-ban-on-u-s-shipping","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/302576\/","title":{"rendered":"Global stock markets tumble as Beijing imposes new ban on U.S. shipping"},"content":{"rendered":"

A broad-based selloff swept global stock markets this morning after U.S. Treasury Secretary Scott Bessent told the Financial Times<\/a> that China \u201cwill be hurt the most\u201d if it doesn\u2019t submit to Washington\u2019s trade demands. At the same time, China showed no signs of backing down from President Trump\u2019s trade war: It imposed sanctions banning Chinese companies<\/a> from doing business with the U.S. subsidiaries of\u00a0 South Korean shipbuilder Hanwha<\/a> Ocean. South Korea\u2019s KOSPI fell 0.63% on the news.<\/p>\n

S&P 500 futures were down 0.87% this morning. Markets in Asia and Europe were almost all down, with Japan\u2019s Nikkei 225 off 2.58% and Europe\u2019s Stoxx 600 down 0.49% by midmorning.<\/p>\n

Beijing\u2019s new export controls on rare earth materials\u2014which the U.S. is dependent on\u2014are \u201ca sign of how weak their economy is, and they want to pull everybody else down with them,\u201d Bessent said<\/a>. \u201cMaybe there is some Leninist business model where hurting your customers is a good idea, but they are the largest supplier to the world,\u201d he told the FT. \u201cIf they want to slow down the global economy, they will be hurt the most.\u201d<\/p>\n

\u201cThey are in the middle of a recession\/depression, and they are trying to export their way out of it. The problem is they\u2019re exacerbating their standing in the world.\u201d (China is, in fact, doing very well<\/a>. Its exports rose 8.3% in September and the World Bank expects China\u2019s GDP to grow 4.8% this year. U.S. growth is forecast at 1.4%.)<\/p>\n

The mood among traders today is a stark reversal from yesterday, when the S&P 500 rose 1.56% after investors realized that Trump and China President Xi Jinping will likely meet at the upcoming APEC conference at the end of October\u2014an opportunity for both men to reach one of Trump\u2019s famous deals.<\/p>\n

Elsewhere, there wasn\u2019t much to cheer up the markets. One third of bettors on Polymarket<\/a> think the U.S. government shutdown will go on beyond November 8.<\/p>\n

Pantheon Macroeconomics noted that consumer sentiment remains low: The University of Michigan\u2019s consumer survey, which asks whether buyers feel now is a good time to make a major purchase, \u201cnow points to year-over-year growth in this measure of core spending slowing to near-zero soon, a far cry from the 6% pace earlier this year,\u201d according to Samuel Tombs and Oliver Allen.<\/p>\n

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Goldman Sachs added to the gloom by publishing a note this morning titled \u201cJobless growth.\u201d \u201cThe modest job growth alongside robust GDP growth seen recently is likely to be normal to some degree in the years ahead. We expect the great majority of U.S. potential GDP growth to come from solid productivity growth boosted by advances in artificial intelligence (AI), with only a modest contribution from labor supply growth due to population aging and lower immigration,\u201d authors Pierfrancesco Mei and David Mericle said.<\/p>\n

In the longer term, however, most analysts continue to see stocks going up, driven largely by the tech and AI sector.<\/p>\n

\u201cRoughly half of this S&P 500 bull has been driven by just seven stocks: Amazon<\/a> (AMZN), Alphabet<\/a> (GOOG\/L), Apple<\/a> (AAPL), Broadcom<\/a> (AVGO), Meta<\/a> (META), Microsoft<\/a> (MSFT), and NVIDIA (NVDA),\u201d Jeff Buchbinder and Adam Turnquist of LPL Financial told clients in a note. But, \u201cThe Fed is in the middle of a rate-cutting cycle and inflation appears to be under control despite increased tariffs, likely eliminating that as a potential bull market killer.\u201d<\/p>\n

Here\u2019s a snapshot of the markets ahead of the opening bell in New York this morning:<\/strong><\/p>\n