Breaking News
0

GLOBAL MARKETS-Stocks, oil prices slide on trade war worries

Stock MarketsJul 12, 2018 02:40
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. GLOBAL MARKETS-Stocks, oil prices slide on trade war worries

* U.S. raises stakes in China trade war

* Wall Street dips, Brent prices nosedive

* Asian, European stocks fall and metals slide

(Adds Wall Street close, recasts with U.S. dollar, updates throughout)

By Hilary Russ

NEW YORK, July 11 (Reuters) - Concerns about an escalating U.S.-China trade war made markets topsy-turvy on Wednesday, with U.S. stocks breaking a four-session winning streak and Brent crude prices seeing their biggest one-day drop in two years.

Even so, the U.S. dollar hit a six-month high against the safe-haven Japanese yen as currency traders put trade worries aside and focused on Labor Department data that showed producer prices rising more than expected. prices also slumped after U.S. President Donald Trump's threat overnight of 10 percent tariffs on another $200 billion of Chinese goods dampened hopes that Washington will eventually step back from the escalating row. clock now starts ticking on a two-month period of public comment before the levies are imposed. Trump has said he may ultimately target more than $500 billion worth of Chinese goods - roughly the total amount of U.S. imports from China last year.

"Unfortunately the markets haven't come to grips with the current levels of trade policies and tariffs," said Art Hogan, chief market strategist at B. Riley FBR in New York.

"Concerns over trade and trade wars are really having an adverse effect, less so on the U.S. markets than the international markets, but it is certainly taking a bite."

The Dow Jones Industrial Average .DJI fell 219.21 points, or 0.88 percent, to 24,700.45, the S&P 500 .SPX lost 19.82 points, or 0.71 percent, to 2,774.02 and the Nasdaq Composite .IXIC dropped 42.59 points, or 0.55 percent, to 7,716.61. currencies, both the yen and the dollar act as safe-haven investments. But the strength of the greenback against the yen suggests investors are reflecting faith in the U.S. economy rather than seeking safety.

The dollar index .DXY rose 0.6 percent, with the euro EUR= down 0.59 percent to $1.1673.

The Japanese yen weakened 0.92 percent versus the greenback at 112.02 per dollar.

In Europe, shares extended losses after Trump kicked off a NATO summit in Brussels by accusing Germany of being a "captive" of Russia. .EU

Australia's dollar, often seen as a proxy for China's economic fortunes due to Australian raw materials exported there, extended losses and was last down 1.21 percent. AUD=D4 /FRX

Industrial metals copper, zinc and lead all slumped as much as 4 percent to their lowest levels in about a year over worries that the trade dispute could dent China's commodity-hungry economy. MET/L

Copper CMCU3 lost 3.12 percent to $6,135.00 a tonne.

Three-month aluminum on the London Metal Exchange CMAL3 lost 1.41 percent to $2,060.50 a tonne.

Oil also fell on news that Libya would reopen its ports, raising expectations of a growing supply. crude CLcv1 fell 4.71 percent to $70.62 per barrel and Brent LCOcv1 was last at $74.12, down 6.01 percent on the day.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Trade tensions in China's markets

https://reut.rs/2L7D8Ls Trade war hit to equity markets

https://reut.rs/2L8nZtk GRAPHIC-Global assets in 2018

http://tmsnrt.rs/2jvdmXl GRAPHIC-Emerging markets in 2018

http://tmsnrt.rs/2ihRugV GRAPHIC-World FX rates in 2018

http://tmsnrt.rs/2egbfVh GRAPHIC-MSCI All Country World Index Market Cap

http://tmsnrt.rs/2EmTD6j

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

GLOBAL MARKETS-Stocks, oil prices slide on trade war worries
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email