LONDON (Reuters) – World shares fell on Monday and oil prices in the United States fell after US President Donald Trump announced tariffs on Chinese products and Beijing responded with similar measures in a growing trade dispute.
Fears that the dispute between the two largest economies The world's biggest oil prices could intensify, adding to the pressure on oil prices, which extended the big fall on Friday at the beginning of the week, while the dollar fell from near 3-week highs against the safe haven yen.
Trump announced tariffs on Friday on $ 50 billion of Chinese imports, including automobiles, as of July 6.
China said it would retaliate immediately by imposing tariffs on US export products, including crude oil, and would suspend all previous trade agreements with the Trump administration.
The exchange of coups between Beijing and Washington has raised fears of a wider and more prolonged dispute, sending Asian shares to a 2-1 / 2 week low.
European stocks opened lower due to the anguish of investors for the prospects of filtered economic growth to European stocks.
The STOXX 600 fell 0.3 percent and the German DAX .GDAXI lost 0.5 percent, while the French CAC 40 .FCHI fell 0.7 percent.
"All this shows how quickly commercial tensions between the US and China could increase," said Derek Halpenny, European Director of Global Market Research at MUFG Bank.
"This may not be the end of the matter since US officials are considering another $ 100 billion of Chinese imports where they could impose tariffs, if they wish," he said.
A potentially destabilizing vote in the coalition government of German Chancellor Angela Merkel on a planned migration could put more pressure on European actions.
In the commodity markets, Brent LCOc1 crude futures fell to a six-week low of 72.45 dollars per barrel on Monday due to worries about a blow to world growth due to the trade dispute and after reports that the main suppliers Saudi Arabia and Russia are likely to agree to increase production at the OPEC meeting on June 22 in Vienna.
U.S. light crude CLc1 reached a two-month low of $ 63.59 a barrel before falling back to $ 64.00, $ 1.06, at 0755 GMT.
The producer cartel of the Organization of the Petroleum Exporting Countries (OPEC), which is de facto directed by Saudi Arabia, and some allies, including Russia, have restricted production since the beginning of 2017.
They will meet in Vienna on June 22 to decide the future production policy.
ROOM FOR COMPROMISE
China has increased its list of US products. UU In which it says that it would double the tariffs in a version published in April, but the value remained at 50,000 million dollars, since some high-value items such as commercial aircraft were eliminated.
Some badysts, however, believe that there is still room for compromise, suspecting that Trump's announcement was a negotiating tactic to extract faster concessions from Beijing.
Analysts also say that the direct impact of tariffs may be limited, especially for the US economy. UU., That is in good shape.
The immediate consequence of the dispute was limited in the currency markets. A slight reaction in the dollar. DXY suggested that the exchange of coups was anticipated in some markets.
The dollar index .DXY against a basket of six major currencies rose 0.1 percent to 94,862.
The index was close to 95,131, a high on Friday, thanks to the dollar rising more than 1 percent last week after the US Federal Reserve gave an aggressive signal on interest rates while the European Central Bank struck a pessimistic tone.
The euro is trading at $ 1.1565 EUR = EBS, not far from a recent two-week low of $ 1.1543 after the European Central Bank suggested it would postpone the rise in interest rates until the summer of next year.
The Australian dollar AUD = D4, a liquid hedge for risk, fell to a six-week low, while its New Zealand cousin NZD = D4 fell to its lowest level since the end of May.
Asian economies dependent on trade and companies connected to China's supply chains are worried that they will suffer collateral damage if world trade slows down, hurting global growth and decreasing business confidence.
"There are trade frictions not only between the US and China, but also between the US and its allies, Trump could put more pressure on other countries such as Japan and the NATO courtiers," said Yoshinori Shigemi, global market strategist at JPMorgan Asset Management in Tokyo.
"So far, investors have been escaping to high-tech stocks and small-cap stocks, after all, money is still plentiful, but investors should be cautious."
Additional reports by Hideyuki Sano in Tokyo; Edited by Adrian Croft