The Monday Market Minute
- World shares increase as Trump opens new fronts in the trade war.
- Reports suggest that the president will target the technology sector in the next tariff movement to thwart China's investment in the US
- . Oil continues to fall as OPEC's decision on production adds supply, but investors question details.
- Wall Street futures fall, with Dow ready for a fall of 175 points, as the benchmark falls in the year to date.
Market Snapshot
World stocks weakened on Monday as investors reacted to President Donald Trump's latest tariff threats that seek to escalate the trade war between Washington and its economic allies. 19659009] The president wrote on Sunday that the United States was preparing "more than reciprocity" to exchange partners that impose what he called "artificial" barriers to US companies, a threat that suggests reports of a plan. Trump's tweets followed his promise on Friday to impose new tariffs on imports of cars in Europe, a measure that caused shares of German automakers to fall drastically on Friday and investors are increasingly convinced that Chinese investment in US technology companies is close to being announced .
Liens will be imposed & eye for eye & # 39; to markets around the world, slowing global economic growth and hitting stock market valuations. Bank of America Merrill Lynch said the current escalation is "really just the first stage of the new arms race between the US and China to achieve national superiority in technology, and protectionism will inevitably rise to address inequality."
The United States insists on all countries that have placed trade barriers and artificial tariffs on products entering their country, eliminate those barriers and tariffs, or face more reciprocity on the part of the United States. UU Trade must be fair and stop being a one-way street!
– Donald J Trump (@realDonaldTrump) June 24, 2018
Stocks in Asia were lower overall, with shares in China falling around 0.8% despite the imminent release around 700 billion yuan ($ 108 billion) in recent liquidity Sunday's cut in the so-called Reason for Reserve Needs for Chinese lenders by the People's Bank of China The MSCI Asia ex-Japan index was marked with a decline of 0.91% at the close of the session, while the Nikke of Japan I started the week with a drop of 0.78% to settle at 22.228.15 points.
#HangSeng The index fell about 1.2% to reach 28999 at one point, breaking 29000 for the first time since December 2017. pic.twitter.com/ufuzqcIVfP
– YUAN TALKS (@YuanTalks) June 25, 2018
European stocks were also weaker at the opening, with the Stoxx 600 index dropping 0.97%, while markets in France (-0.85%) and Spain (-1.22%) recorded notable losses. The DAX performance index of Germany was marked 1.25% lower in the opening hours of the negotiation, with automakers such as Daimler AG (DMLRY) (-1.79%), BMW AG (BMWYY) (-1.66) %) and Volkswagen (VLKAY) (-2.32%) leading the declines. The Stoxx 600 Auto and spare parts index was marked 1.71% lower at 563 points, the lowest level since September 11.
The first signs of US futures prices UU They suggest that the sale will also affect Wall Street, with contacts linked to the Dow Jones Industrial Average
Technology stocks are likely to refocus on Monday's session, given a double set of reports over the weekend, first in the Wall Street Journal, suggesting that President Trump will use the Economic Powers Act of 1977 international emergency for The reports also indicated that the US Department of the Treasury. UU., The US Department of Commerce. UU and the National Security Council were developing plans to introduce "enhanced" export controls, which could be revealed as: this week, to prevent US technology from reaching China.
The Nasdaq Composite Index is set for a fall of 59.5 points, according to futures prices, while Action Alerts Plus shares with participation of Apple Inc. (AAPL) were marked 1.03% lower at 183.01 each one.
Far from the stock, the US dollar index, which compares the dollar against baskets of six world currencies, scored 0.1% higher at the start of European operations at 94,615, while the returns of the US Treasury UU 3 basis points to 2,869%. German bonds were also in favor amid the decrease in appetite for risk, with 10-year benchmark yields falling 2 basis points to 0.315%.
World oil prices also extended the declines since Friday's sale following OPEC's decision to add more oil to the market. reducing compliance among members of its December 2016 production cut. While the cartel did not specifically mention the number of barrels that could be released, market expectations range from 600,000 to 700,000 barrels per day, mainly as a result of the increase in production in Saudi Arabia and Russia, allied with OPEC.
Brent crude futures contracts for delivery in August registered a decline of $ 1.30 from their close on Friday in New York and changed hands to $ 74.25 in early European operations while WTI contracts for the same month, The new benchmark for prices in the United States, dropped 21 cents to $ 68.37 per barrel.
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