On Friday, Trump said he was ready to levy additional taxes on practically all Chinese imports, threatening duties on $267 billion of goods over and above planned tariffs on $200 billion of Chinese products.
The trade surplus hit $31.05 billion in August and it continues to add fuel to the already heating up trade rhetoric between the USA and China. "First, given the balance of Apple's economic footprint, the burden of the proposed tariffs will fall much more heavily on the United States than on China". But disagreements between the two major economic powers run deeper than just the trade balance and tensions remain over limits on USA firms' access to Chinese markets, intellectual property protection, technology transfers, and investment.
The strong employment report boosted the dollar, which held on to Friday's gains at 95.43. The euro was up 0.1 percent against the dollar at $1.1566 after falling more than half a percent on Friday following the U.S.jobs data.
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But Tokyo and Seoul both ended 0.3 percent higher. Beijing has threatened to retaliate against any measures out of Washington.
Chinese shares were battered with the blue-chip index off 1.4 percent. Previously, Trump assured Apple that it would be safe from his trade war with China.
McPherson expects the US equity bull market to remain intact although there were some near-term risks.
The Australian dollar, a proxy for emerging market growth, hovered near its lowest in 2-1/2 years.More news: Paris stabbing: Several injured in knife spree, suspect arrested
He pointed to the latest fall in China's currency, the yuan, which is now down nearly 9 percent versus the dollar since April.
In commodities, oil prices were firmer after three straight days of losses, with USA crude futures up 44 cents at $68.20 per barrel.
Spot gold was a tad softer at $1,193.01. "That uncertainty could result in more stock market volatility as investors worry that the Fed may move too far in its normalization campaign".More news: International Space Station Leak May Be Sabotage: Hole Was Made By Drill