By IFCMarkets
US stock indexes relinquished early gains on Thursday after President Trump tweeted US will impose a 10% tariff on $300 billion of Chinese imports from September 1. The S&P 500 lost 0.9% to 2953.56. The Dow Jones industrial average fell 1.1% to 26583.42. Nasdaq composite index slid 0.8% to 8111.12. The dollar weakening resumed as manufacturing indexes of both ISM and Markit indicated manufacturing expansion slowed in July: 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, fell 0.2% to 98.38 and is lower currently. Stock index futures point to lower market openings today
European stocks extended gains on Thursday on back of strong quarterly results. EUR/USD turned higher while GBP/USD accelerated its decline yesterday as the Bank of England (BOE) held interest rates steady at 0.75%. Both pairs move in previous session’s directions currently. The Stoxx Europe 600 index ended 0.4% higher. Germany’s DAX 30 gained 0.5% to 12253.15. France’s CAC 40 rose 0.7% while UK’s FTSE 100 slipped 0.03% to 7584.87 as BOE cut its growth forecast to 1.3% for 2019 and 2020, down from 1.5% and 1.6% respectively.
Asian stock indices are sharply lower today as President Trump tweeted about 10% tariffs to take effect September 1 on an additional $300 billion of Chinese imports after US negotiators briefed him of the recent trade meeting in Beijing. Nikkei fell 2.1% to 21087.16 as yen slowed its slide against the dollar. Chinese shares are tumbling as Chinese officials expressed their disagreement saying additional tariffs is not a constructive way to resolve economic and trade frictions: the Shanghai Composite Index is down 1.4% and Hong Kong’s Hang Seng Index is 2.4% lower. Australia’s All Ordinaries Index slid 0.3% as Australian dollar resumed its climb against the greenback.
Brent futures prices are recovering today. Prices sank yesterday: October Brent crude lost 7% to $60.50 a barrel on Thursday.
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