US markets slide as Trump threatens more China tariffs

The major US indexes were all in the red in late Friday trading amid trade war fears.

Earlier this week, China threatened to widened the scope of retaliatory tariffs from $US3 billion to around $US50 billion of US imports.

US president Donald Trump, in turn, directed US officials to identify tariffs on $US100 billion more Chinese imports, beyond $US50 billion already identified.

Toward the end of the trading session, the Dow Jones Industrial Average was down 635 points or 2.59% to 23,870.

The S&P 500 was down 63 points or 2.37% to 2600.

And the Nasdaq was down 164 points or 2.32% to 6913.

While some trade experts have questioned Mr Trump's logic, the president says a trade war will ultimately benefit the US.

However, as the rural sector, auto makers and others have expressed nervousness, the president has acknowledged short-term challenges.

"I'm not saying there won’t be a little pain. So we may take a hit, and you know what, ultimately we're going to be much stronger for it, but it's something we ought to do," he told media on Friday.

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The US media has also started to cover the theme that China is better positioned for an extended standoff.

Mr Trump faces a re-election fight in 2020. And, more pressingly, all of the House of Representatives and one-third of the Senate are up for re-election in November mid-terms, now barely half a year away.

NBR essayed this theme back on March 25, noting China's president Xi Jinping does not have to face the ballot box. The country's leadership also enjoys control over its media, and banks.

NZX finishes in the black
On the home front, the S&P/NZX50 Index rose 29.28 points, or 0.4 percent, to 8,393.27. 

Friday trading closed before the latest round of US-China tension.

The top performer across the NZX was Orion Health [NZX:OHE], up 20% to 72c after the company addressed trade-sale speculation raised by NBR.

Inside the benchmark NZX50, Sky TV [NZX:SKT] clocked the biggest rise, up 6.3% to $2.35. The pay TV broadcaster has just outlined plans to upgrade its apps, and fleshed out more details on its wider technology upgrade plans.