Yet trade worries were never far away. Already, in a separate move, the United States is drawing up a list of about $50 billion in Chinese imports to tax in an effort to punish Beijing for stealing American technology or forcing USA companies to hand over trade secrets.
Beijing has said it would place 25 per cent trade tariffs on 106 United States goods, including soybeans, cars and orange juice.
The moves triggered further heavy selling in global stock markets and commodities, with US stock futures sliding 1. That includes companies that can no longer sell goods and services to China, and businesses and consumers who can no longer buy the lower priced Chinese imports they've come to depend upon. While the German DAX Index has slumped by 1.3 percent, the French CAC 40 Index is down by 0.9 percent and the U.K.'s FTSE 100 Index is down by 0.5 percent.
According to the 2017 index on manufacturing development published by the Chinese Academy of Engineering on April 2, the top four manufacturing nations in 2016 were the USA with a score of 172.28, Germany with 121.31, Japan with 112.52 and China with 104.34.
There are no winners here and, with numerous economies hinged on China's demand for raw materials and goods, not to mention the market sensitivity to China's economy, there will be many a government hoping that the threat of a trade war is put to bed.
Peace proved perishable again for investors after China retaliated to Donald Trump's tariff proposal with its own levies on $50 billion of US imports.
The swing in risk sentiment put the pep back into bonds, with yields on USA 10-year Treasury debt down two basis points at 2.76 per cent.
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Farm equipment maker Deere lost $4.47, or 2.9 percent, to $148.57, after an early drop of 6.2 percent.
The tit-for-tat action comes hours after Washington detailed about 1300 Chinese products it meant to hit with tariffs - also set at 25 percent. 5 percent and 1.
The escalating confrontation between Washington and Beijing inched closer to all-out trade war on Wednesday after China threatened retaliation against key United States exports, sending global stocks lower.
The yen also edged back, with the dollar rising to ¥106.50 from a low of ¥105.70 on Tuesday. The euro rose to $1.2278 from $1.2267. 2287, after easing from a high of $1.
"The flight to safety returns and this reaction once again has investors flocking to havens", Jingyi Pan, a market strategist at IG Asia Pte.
The Mexican peso and Canadian dollar both held firm after hitting a almost five-month and five-week highs, respectively in recent day on growing optimism about the prospect of a NAFTA trade deal.
Investors also seemed to be keeping their nerve on the global economic outlook after a host of manufacturing purchasing managers indices (PMIs) showed some slowing, but from lofty levels in many regions.