China refutes U.S. allegations of currency manipulation

US President Donald Trump also says he's prepared to impose U.S. tariffs on all Chinese imports

United States Treasury Secretary Steven Mnuchin said there's no chance of a currency war erupting.

The dollar index is so far up 2.4 percent this year. It was last down 0.2 percent at 94.27, the lowest in more than two weeks.

The US imposed a 25% duty on Chinese goods worth 34 billion United States dollars in annual imports.

MSCI's gauge of stocks across the globe gained 0.37 percent, helped by Asian markets.

The pan-European STOXX 600 index slumped 0.2 percent at 384.94 points, while the FTSEurofirst 300 index plunged 0.3 percent to 1,506.82 points.

Chinese shares also opened lower but quickly reversed their losses, with both the blue-chip index and Shanghai's SSE composite up a touch.

Gold prices fell towards one-year lows on Monday as the dollar continued to strengthen against the currencies of key bullion consumers China and India.

Roberto Perli, a partner at Cornerstone Macro LLC and a former Fed economist, says Trump's criticism of Fed rate hikes actually may have improved the likelihood that policy makers tighten as planned, to drive home their independence.

Against the yen, the dollar traded at 110.98 after dipping as low as 110.74 earlier in the session following a media report that the Bank of Japan was engaging in "unusually active discussions" ahead of its July decision.

"Against the global backdrop where the Fed is expected to tighten further, relaxing monetary policy could create a negative impact on the (Chinese) exchange rate", analysts at China Merchants Bank said in a note on Monday.

In early trade Tuesday, the yield on 10-year Chinese government bonds jumped 5 basis points to 3.57 percent.




The jump follows a steady decline in the yield on 10-year treasury bonds, fuelled by robust demand.

European Commission President Jean-Claude Juncker heads to Washington on Wednesday to meet with President Donald Trump and try to avert an escalation of tit-for-tat trade tariffs.

Moscovici said the G-20 meeting had not been tense.

While it does let market forces play a role, China keeps the yuan within a narrow trading band that its adjusts daily and is widely known to intervene, which has triggered past USA allegations of manipulation, including from Trump.

"Nonetheless, the trade numbers that were released for Singapore and Japan were worse than expected".

Elsewhere, the euro climbed for a third straight day to a two-week top of $1.1746.

In offshore trading, the yuan rose 0.15 percentage point to 6.8085 versus the dollar at 3.40 p.m. Beijing time.

In commodities, oil prices were held back by concern over the US-China trade tensions and increased supply.

US crude was last off 16 cents at $68.1 a barrel after posting its third straight weekly loss. Global benchmark Brent crude was trading 1.4 percent up at $73.97 per barrel by 1014 GMT, having hit a low of $71.19 on Wednesday, its lowest since April 17.

Spot gold was down 0.5 percent at $1,225.41 an ounce by 1441 GMT, close to last Thursday's low of $1,211.08, while US gold futures for August delivery were down 0.5 percent at $1,225.50.

Related news:

Hot News

isis-killer-beheading-video-story-top Marchionne replaced as FCA Group boss due to ill health
Jul 25, 2018 - 02:02
Marchionne's overarching goal had been to turn Ferrari into a luxury company beyond cars to further leverage the brand. Marchionne has stated in the past his desire to step down as FCA CEO sometime in 2019.

isis-killer-beheading-video-story-top Trump responds to Cohen taping: 'Your favourite president did nothing wrong'
Jul 25, 2018 - 02:01
The search warrant needed for the raid had been issued thanks to a referral from the head of "Russiagate" probe, Robert S. Mueller, and has already been decried by Cohen's lawyer as " inappropriate and unnecessary ".

isis-killer-beheading-video-story-top Tesla plunges after report suppliers asked to hand back cash
Jul 25, 2018 - 01:16
Tesla requested the supplier return what it calls a meaningful amount of money of its payments since 2016, according to the memo. Tesla's share price is now down 4.22 per cent, after hitting a low of 4.3 per cent in pre-market trading this morning.

isis-killer-beheading-video-story-top Raptors head sorry for DeRozan deal 'miscommunication'
Jul 24, 2018 - 02:57
On Friday, Raptors president Masai Ujiri issued an apology to DeRozan, calling the unexpected trade a "gap in miscommunication". It showed that whether or not Raptor fans are happy about getting Kawhi Leonard, they will miss their homegrown superstar.

isis-killer-beheading-video-story-top Mass shooting in Toronto, many said to be injured
Jul 24, 2018 - 02:14
Thirteen others were injured , ranging in ages from 10 to 59, Toronto Police Chief Mark Saunders said at a Monday news conference. Meanwhile, John Tulloch, another witness, said that he was getting out of his vehicle on the Danforth when he heard the gunshots.

isis-killer-beheading-video-story-top Trump says 'I gave up nothing' during Putin meeting
Jul 24, 2018 - 01:55
Trump had just days earlier confirmed his acceptance US intelligence conclusions about Russian interference. As President Donald Trump found himself under pressure from his own party this past week, Republican U.S.

isis-killer-beheading-video-story-top Johnny Manziel traded to Montreal Alouettes
Jul 24, 2018 - 01:35
On Sunday, the Tiger-Cats traded the former Heisman Trophy victor to the Montreal Alouettes , according to Duane Ford of TSN. That's despite the Tiger-Cats' head coach saying Manziel should reach the National Football League within two years.

isis-killer-beheading-video-story-top Duck boat accident survivors join hundreds at memorial service
Jul 24, 2018 - 01:20
The duck boat will then be transported to a secure facility, where it will undergo an inspection as part of the investigation. The report also highlighted a faulty water pump, a lack of maintenance, and less than rigorous Coast Guard oversight.

isis-killer-beheading-video-story-top Los Angeles police report possible hostage situation at Trader Joe’s
Jul 23, 2018 - 03:21
Aerial video showed officers carrying a injured person of the store and carrying children out from the store to safety. Frightened customers and workers dived for cover as police bullets fired at the man shattered the store's glass doors.

isis-killer-beheading-video-story-top 100 ex-students report sex misconduct by now-dead team physician
Jul 23, 2018 - 02:59
The victims, the school said, could have included high school-age students while he was still employed at Ohio State. The news comes days after a group of former athletes filed a pair of class-action lawsuits against the school.

isis-killer-beheading-video-story-top Spieth cards 65 to share lead with Schauffele and Kisner
Jul 23, 2018 - 01:41
Asked about becoming the first Englishman to win a British Open in 26 years, Fleetwood said, "It would be very special. His first two holes were steady, if nothing else, with Woods at par through three.

isis-killer-beheading-video-story-top Danica Patrick 'crashes and burns' opening monologue at ESPY Awards
Jul 23, 2018 - 01:26
They have also enjoyed a few couples trips together, including visiting Mexico, Africa and India, where they met the Dalai Lama. Patrick soldiered on, telling the audience, "We have to mention the elephant in the room".

isis-killer-beheading-video-story-top Trump threatens tariffs on all US$505 billion of Chinese imports
Jul 23, 2018 - 01:15
Powell told lawmakers that "for now - the best way forward is to keep gradually raising the federal funds rate". The U.S. should be allowed to recapture what was lost due to illegal currency manipulation and BAD Trade Deals.

isis-killer-beheading-video-story-top Syrian army retakes territories near Golan Heights
Jul 23, 2018 - 01:11
Hundreds of volunteer rescuers have been evacuated from southwest Syria for resettlement in Britain, Canada and Germany . The White Helmets , officially called the Syrian Civil Defence, operates a rescue service in rebel-held parts of Syria.

isis-killer-beheading-video-story-top U.S. urges United Nations sanctions until NK acts on denuclearisation
Jul 22, 2018 - 02:53
On Thursday, Russia and China moved to block the US , putting a six-month hold on the request. Pompeo asked. "We need to see Chairman Kim do what he promised the world he would do".