US stocks drop after China announces tariffs on $60B US imports
US stock market pulled back on Monday as US-China trade dispute tensions rose after China imposed retaliatory tariffs on $60 billion worth of imports from US following US hike of tariffs Friday on $200 billion of imports from China to 25% from 10%. The S&P 500 lost 2.4% to 2811.87. Dow Jones industrial tumbled 2.4% to 25324.99. TheNasdaq composite dropped 3.4% to 7647.02. The dollar weakening reversed:. the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, rose 0.05% to 97.34 but is lower currently. Futures on US stock indexes point to higher openings today.
DAX 30 suffers heaviest loss among European indexes
European stocks slumped on Monday after Beijing’s announcement it imposed duties on $60 billion worth of imports from US. EUR/USD joined GBP/USD’s slide with euro turning higher against dollar currently while Pound continues its slide. The Stoxx Europe 600 index declined 1.2% with utility shares the only sector which avoided losses. The DAX 30 dropped 1.5% to 11876.65. France’s CAC 40 tumbled 1.2%. UK’s FTSE 100 lost 0.6% to 7163.68.
Hang Seng leads Asian indexes losses
Asian stock indices are extending losses today. Nikkei closed 0.6% lower at 21067.23 despite renewed yen slide against the dollar. Markets in China are solidly lower with no date set for continuing trade talks with US after negotiations ended last Friday with no deal: the Shanghai Composite Index is down 0.7% and Hong Kong’s Hang Seng Index is 1.8% lower. Australia’s All Ordinaries Index extended losses 0.9% as Australian dollar resumed climb against the greenback as business sentiment remained subdued in April according to business confidence index of the National Australia Bank.
Brent futures prices are edging higher today with global markets slump capping gains. Prices fell yesterday despite a rise in Middle East tensions on news of ‘sabotage’ attacks on Saudi oil tankers in Strait of Hormuz: July Brent crude lost 0.6% to $70.23 a barrel on Monday.