Global stock markets fell on Tuesday as fears of a trade war escalate rattling markets.
U.S. President Donald Trump latest threats to impose $200 billion worth of imports on Chinese goods sparked the volatility sending the Dow Jones Industrial Average back into negative territory.
Escalating Fears of Trade War
According to news reports, President Trump is also ready to impose a further $200 billion if China retaliates. On Friday China imposed tariffs on $50 billion worth of U.S. goods.
Market analyst at Oanda, Craig Erlam said that investors are clearly shaken by the escalation in the recent days and the U.S. stock markets are back to where they were since the start of May.
He also went on to say that Chinese stocks are faring worse than U.S companies, but they could come under more pressure if a solution isn’t found by both sides.
Head of capital markets research at John Hancock Investments in Boston, Emily Roland said that investors are coming to the realisation that the negotiating tactics is more than rhetoric.
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New York – Dow Jones Industrial Average: DOWN 1.15 percent at 24,700.21 falling 287.26 points (close).
New York – S&P 500: DOWN 0.4 percent at 2,762.57 (close) – posting seven new 52 week highs with five new lows. The S&P industrials index suffered its biggest one day percentage drop in two months falling 2.1 percent.
New York – Nasdaq Composite: DOWN 0.3 percent at 7,725.59 dropping 21.44 points (close) – recording 135 new highs and 48 new lows.
The Philadelphia Semiconductor index slipped 1.2 percent.
Russell 2000 index edged up 0.1 percent.
London – FTSE 100: DOWN 0.4 percent at 7,603.85.
Frankfurt – DAX 30: DOWN 1.2 percent at 12,677.97.
Paris – CAC 40: DOWN 1.1 percent at 5,390.63.
EURO STOXX 50: DOWN 0.9 percent at 3,435.30.
Tokyo – Nikkei 225: DOWN 1.8 percent at 22,278.48.
Hong Kong – Hang Seng: DOWN 2.8 percent at 29,468.15.
Shanghai – Composite: DOWN 3.8 percent at 2,907.82.
Euro/dollar: slipped at $1.1587 from $1.1623 at 2100 GMT.
Pound/dollar: fell at $1.3178 from $1.3245.
Dollar/yen: fell at 110.04 yen from 110.55 yen.
Brent Crude: dropped 26 cents at $75.08 per barrel.
West Texas Intermediate: fell 78 cents at $65.07 per barrel.
Expectations are that OPEC and Russia will reverse their deal that has been in place over the last 18 months at their upcoming meeting on June 22-23 meeting.
The CBOE Volatility Index, was nearly at a three-week high of 14.68 points later dropping to 13.35. (The Index is a gauge on Wall Street’s fears).
The volume on U.S. Exchange was up from 6.95 billion to 7.12 billion shares.
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