Asian shares have sold off as the US chipmaker Nvidia took a hit from US curbs on chip sales to China, highlighting the damage from the escalating trade war between Washington and Beijing.
Nvidia said it expects a $5.5bn hit after Donald Trump’s administration barred the chip designer from selling its H20 chip in China.
Japan’s Nikkei is down 1.5%, while Hong Kong’s Hang Seng lost 2.4% and markets in Shanghai and Shenzhen fell by 0.5% and 1.57% respectively.
Last night Donald Trump ordered an investigation into potential new tariffs on all US critical minerals imports, which comes after similar investigations into pharmaceutical and semiconductor imports.
Gold, seen as a safe haven asset, has jumped by 1.9% to $3,289 an ounce, setting another record high.
Inflation in the UK has slowed by more than expected, increasing pressure on the Bank of England to lower interest rates next month.
Annual consumer price inflation fell to 2.6% in March from 2.8% in February, slightly less than the 2.7% forecast by economists.
Inflation was dragged lower by recreation and culture, which was partly offset by higher prices for clothing and footwear.
The chancellor, Rachel Reeves, said: "Inflation falling for two months in a row, wages growing faster than prices and positive growth figures are encouraging signs that our plan for change is working, but there is more to be done.
"I know many families are still struggling with the cost of living and this is an anxious time because of a changing world. That is why the government has boosted pay for 3 million people by increasing the minimum wage, frozen fuel duty and begun rolling out free breakfast clubs in primary schools."
China’s economic growth in the first quarter beat expectations, underpinned by consumption and industrial production, but the latest US tariffs of 145% have clouded the outlook.
The world’s second-biggest economy grew by 5.4% between January and March, the same as in the previous quarter.
Industrial production grew more strongly than expected in March, and at the fastest rate since June 2021. Output increased by 7.7% year on year, up from 5.9% in February. All major sectors grew faster. In the first quarter, industrial production grew by 6.5%.
The agenda
• 9am BST: eurozone inflation final for March
• 12.30pm BST: US Retail sales for March
• 1.15pm BST: US industrial production for March
• 1.45pm BST: Bank of Canada interest rate decision
We'll be tracking all the main events throughout the day … |
