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Chinese blacklist darkens U.S. trade war as Canadian gold shines
Pessimism continued in New York Tuesday with the indices closing down again. Falling 1.67%, the Nasdaq suffered its worst day since August 23. The Dow fell 1.19% to trade right between its 50-day and 200-day moving averages. And the S&P plunged 1.56%. The sell-off began at the opening bell after the U.S. Department of Commerce blacklisted 28 Chinese companies and agencies, banning them from doing business in America.
Most of them were in A.I., machine learning and digital surveillance. Despite Washington’s denials of any connection, the blacklist casts a large cloud over Thursday’s resumption of trade talks and rachets up tensions in the U.S.-China trade war. How will China retaliate? And that’s not an if. It will. The news has overshadowed U.S. Fed Chair Jerome Powell‘s latest announcement of resuming the purchase of U.S. treasuries yet stressing this is not a QE announcement.
In contrast, the TSX was like a walk in the park, shedding only 0.78%. Gold and silver stocks led the gainers as investors sought the haven of the shiny rocks, including: