U.S. stock indexes jump following big gains in Europe

Stocks slide again on report the U.S. plans more tariffs on Chinese goods

People pass the New York Stock Exchange

The trade war started with Trump's steel and aluminum tariffs, quickly escalating to include tariffs on US farm products, most notably soybeans and pork. The S&P 500 index fell 0.7 percent to 2,641.25.

The S&P 500 is down 32.36 points, or 1.2 percent. Hong Kong's Hang Seng bucked the trend, slipping 0.9 per cent to 24,585.53.

The Dow Jones Industrial Average slumped 245.39 points, or 1 percent, to 24,442.92.

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Bloomberg news reported on Monday that Washington was preparing to announce tariffs on all remaining Chinese imports by early December if talks next month between Trump and his counterpart Xi Jinping fail to ease the trade war. Alphabet, Google's parent company, lost 4.5 percent to $1,034.73.Amazon.com dropped another 6.3 percent to $1,538.88. Shares were higher in Taiwan but fell in Singapore, Indonesia and Thailand.

U.S. President Donald Trump said he thinks there will be "a great deal" with China on trade, but warned that he has billions of dollars worth of new tariffs ready to go if a deal isn't possible. But a weakening of the Chinese yuan, which can make its products more price competitive, lifted sentiment in Asia. It recovered to 6.9599 per dollar later in the day.

ANALYST'S TAKE: The optimism may be misplaced, said Jingyi Pan of IG. "This is not including the externalities. from damage to business confidence and upon the regional supply chain". The yield on the 10-year Treasury note rose to 3.08 percent from 3.07 percent.The price of USA crude oil dropped 0.8 percent to $67.04 per barrel in NY while Brent crude, used to price worldwide oils, lost 0.4 percent to $77.34 per barrel in London.Wholesale gasoline added 0.5 percent to $1.82 a gallon and heating oil slid 0.8 percent to $2.28 a gallon. The contract dropped 55 cents to settle at $67.04 a barrel in NY. Brent crude, used to price global oils, lost 19 cents to $77.18 per barrel. In the previous session, it dropped 29 cents to $77.37 a barrel. Copper was little changed at $2.74 a pound.The dollar rose to 112.35 yen from 111.85 yen.

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