US hikes tariffs to 25% from 10% on $200B Chines goods

May 10, 2019

By IFCMarkets

US stocks fall fourth straight session

US stock market extended losses on Thursday ahead of tariff hike to 25% from 10% on $200 billion Chines goods which came into effect today. The S&P 500 slid 0.3% to 2870.72. The Dow Jones industrial average fell 0.5% to 25828.36. Nasdaq composite index lost 0.4% to 7910.59. The dollar resumed weakening as data showed US wholesale prices rose a below expected 0.2% in April, and trade deficit widened in March. 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, slipped 0.2% to 97.417 and is lower currently. Futures on US stock indexes point to lower openings today.

CAC 40 loss leader among European indexes

European stocks pullback resumed on Thursday. GBP/USD joined EUR/USD’s accelerated climb. Euro is higher currently while Pound is down against the dollar. The Stoxx Europe 600 index fell 1.6% led by auto shares. Germany’s DAX 30 dropped 1.7% to 11973.92. France’s CAC 40 tumbled 1.9% and UK’s FTSE 100 lost 0.9% to 7207.41.

Shanghai Composite leads Asian indexes rebound

Asian stock indices are mixed after US tariff hike on $200 billion of Chinese goods took effect today. Nikkei lost 0.3% to 21344.92 despite resumed yen slide against the dollar. Chinese shares are rebounding after news China current account surplus reached $58.6 billion while Bejing promised to retaliate: the Shanghai Composite Index is up 3.1% and Hong Kong’s Hang Seng Index is 0.9% higher. Australia’s All Ordinaries Index extended gains 0.3% despite Australian dollar resumed climb against the greenback.

Brent futures prices are recovering today. Prices fell yesterday on rising US-China trade dispute concerns: July Brent crude added 0.03% to $70.39 a barrel on Thursday.

Market Analysis provided by IFCMarkets

Note:
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