Stocks - Wall Street Slides as China Increases Tariffs in Trade Retaliation - Investing.com

© Reuters.

Investing.com - U.S. stock markets opened sharply lower on Monday as China announced countermeasures against the U.S. in an escalating trade dispute.

Beijing indicated plans to beginning on June 1 in response to U.S. President Donald Trump’s instructions to Trade Representative Robert Lighthizer to prepare 25% tariffs on virtually all Chinese products imported to the U.S., including those which were not currently covered by existing levies.

That presidential order came after the U.S. increased tariffs last Friday on $200 billion of Chinese imports to 25% from 10%.

Fears that the growing escalation of the Sino-U.S. trade dispute threatens to derail the global economy shook risk assets on Monday.

The tumbled 457 points, or 1.8%, to 25,485.76 points by 9:33 AM ET (13:33 GMT), while the sank 52 points, or 1.8%, 2,829.38 points and the tech-heavy slid 179 points, or 2.3%, 7,738.33 points.

Hu Xijin, editor-in-chief of China’s state-controlled Global Times, singled out Boeing among the Dow components likely to be targeted by the new round of tariffs.

“China may stop purchasing U.S. agricultural products and energy, reduce Boeing orders and restrict U.S. service trade with China,” he said in a tweet, adding that Chinese authorities could also consider dumping their holdings of U.S. Treasuries.

Shares of Boeing (NYSE:) sank 3.4%, topped only by the 4.7% decline in Apple (NASDAQ:), for whom China is an increasingly important market, and a 3.6% slide in industrial global bellwether Caterpillar (NYSE:).

With no major economic data or company reports scheduled for Monday, trade will be driven by any developments with regard to the ongoing dispute.

“Lacking recent precedents, stocks are missing an anchor in the midst of escalating China-U.S. trade tensions,” Mohamed El-Erian, chief economist at Allianz, said via Twitter. “As such, they continue to react to every statement from government officials.”

Outside of equities, the , which measures the greenback against six rival currencies, lost 0.3% at 96.83 by 9:35 AM ET (13:35 GMT), while the fell 4 basis points to a six-week low of 2.41%.

In commodities, rose $12.25, or 1.0%, to $1,299.75 a troy ounce, while jumped $1.50 cents, or 2.4% to $63.16 a barrel.

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.

Let's block ads! (Why?)

https://www.investing.com/news/stock-market-news/stocks--wall-street-slides-as-china-increases-tariffs-in-trade-retaliation-1866171

2019-05-13 13:37:00Z
52780294255479

Bagikan Berita Ini