China: We'll 'Fight to the End'

The war of words about a war of trade escalated overnight between China and the US, but world markets—including American futures—were nonetheless rising for the first time in days.

• China's threat: "The US side's threat to escalate tariffs against China is a mistake on top of a mistake, once again exposing the American side's blackmail nature," said China's commerce ministry on Tuesday, per Reuters. "If the US insists on its own way, China will fight to the end." (This in response to President Trump's threat on Monday to impose an additional 50% tariff on China.)

• Battle signs: China made two other moves to signal a "protracted battle," per the Wall Street Journal: It shored up support for its own stock market after Monday's steep decline and devalued the yuan against the dollar.
• Markets rise: Despite the rhetoric, the US stock market was poised to claw back some of its recent losses. Dow futures were up about 700 points early Tuesday, about 1.7%, while the S&P 500 and the Nasdaq also were up about 1%, per CNBC. Most Asian and European markets rose as well. The rise is perhaps because the White House signaled it was open to negotiations with Japan, Israel, and other countries on the tariffs. (A bogus news report showed how quickly markets might rise.)
• Changes: The head of the European stock exchange operator Euronext says the US has become "unrecognizable" because of its reliance on protective tariffs. "There is a certain form of mourning, because the United States that we had known for the most part as a dominant nation resembled the values and institutions of Europe and now resembles more an emerging market," Stephane Boujnah told France Inter radio, per Reuters.

(More tariffs stories.)