Home » Money

Dow set for big drop as trade war fears return

07 April, 2018, 09:50 | Author: Samuel Sharp
  • E-mini Dow Jones Industrial Average

The Dow Jones industrial average fell as much as 620 points in afternoon trading Friday, the Associated Press reported.

Boeing, among the hardest-hit stocks on Wednesday after China retaliated with $50 billion in tariffs on USA goods, rose 2.7 per cent, giving the Dow its biggest boost, followed by Goldman Sachs, up 1.3 per cent.

The Dow average, which contains numerous multinational companies including industrial powerhouses Boeing and Caterpillar, has swung dramatically this week, with about 1,300 points separating its lowest point Monday afternoon from its high late Thursday.

The Toronto Stock Exchange's S&P/TSX composite index unofficially closed down 148.64 points, or 0.97 percent, at 15,207.41.

This story is developing and will be updated...

"The ratcheting up of trade tensions clearly carries risks".

European equity markets also retreated, but not as severely, with Paris, Frankfurt and London falling half a percentage point or less.

The White House, in a statement (http://www.marketwatch.com/story/trump-statement-requesting-100-billion-in-additional-china-tariffs-2018-04-05) released after the market close Thursday, said that Trump asked the U.S. Trade Representative to consider an extra $100 billion in Chinese goods to face tariffs (http://www.marketwatch.com/story/futures-fall-as-trump-seeks-100-billion-in-additional-china-tariffs-2018-04-05) and to identify the products that could be targeted.


Many are in a panic over the recent escalation and some believe that China can handle a potential trade war far better than America can due to the nature of its government and economy. Beijing fired back hours later by threatening tariffs on $50 billion worth of U.S. goods, including cars, planes and soybeans. Equities briefly pared declines as White House officials attempted to tone down the rhetoric, suggesting any actions remained far off. Treasury yields and the dollar held losses after Federal Reserve Chair Jerome Powell's first speech as head of the USA central bank.

The moves follow United States tariffs that were imposed earlier this year on Chinese steel and aluminum.

Briefing.com analyst Patrick O'Hare said investors were disappointed by the lack of reassurances from Trump administration officials, including Mnuchin, who told CNBC that the administration hoped to negotiate but acknowledged that a trade war was a possibility.

To make things worse, the United States economy added fewer jobs than expected in March, according to a government report released Friday morning.

The Fed is on track to raise rates three times this year, but it could speed up the increases to keep the economy from overheating.

"Investors breathed a sigh of relief", said Sam Stovall, chief investment strategist at CFRA Research. In February, an unexpected jump in wage growth set off inflation alarm bells and caused stocks to plunge.

The yield on the 10-year US Treasury note, which has been steadily climbing as investors' inflation expectations rise, dipped slightly to 2.78% after the jobs report. "Now we only have one issue to deal with, and that's trade".

Recommended:



Popular

Samsung Galaxy S9 Mini with Snapdragon 660 surfaces on Geekbench
Insane thing is with the S8 just getting 8.0 and 9.0 right on the horizon who knows when either the S8 or S9 will see that update. If Samsung were to really launch the device as the Galaxy S9 mini , then it could mark the revival of the Galaxy S mini series.

Four dead in Turkish university shooting
Gonen said the assailant entered the university's education faculty with a gun and shot the four university staff members. Media reports said the gunman, identified as Volkan D., turned himself in to police after the attack.

Achyuta, Prashant, Soumya took oath as Rajya Sabha members
Narasimharao, Sakaldeep, Vijay Pal Singh Tomar, Harnath Singh Yadav, Anil Baluni, Abir Ranjan Biswas, Subhasish Chakraborty, M. He urged the members to take part in the voting and reject the Bill through their vote if they were opposed to it.

CWG 2018: Lifter Gururaja cliams silver, opens India's medal account
The previous record was also held by Ibrahim when he lifted a total of 260kgs in the 2002 Commonwealth Games in Manchester. Birtwhistle was in 12th position with just the run to go but charged home in a stunning finish.

London pensioner arrested on suspicion of murdering burglar
Police continued to search Mr Osborn-Brooks's home for clues this morning as neighbours said they would meet to campaign for him. Scotland Yard confirmed that officers have informed the dead man's next of kin, but he has not yet been officially identified.

Amazon Leaks Spyro Remastered Trilogy, Due Out September 21
After leaking last night , Activision has finally confirmed that Spyro will return for a new generation of gaming this September. Spyro first graced the PlayStation back in 1998, with the console also getting two sequels, all from developer Insomniac Games.

Winter Storm Wilbur Dumps Snow on Upper Midwest
It should produce a "quick burst" of snow - that could coincide with the Friday morning commute - before changing over to rain. I think we're going to have to wait until sometime after the middle of the month before we see prolonged spring-like weather.

Schneiderman sues administration over census question
The US Department of Commerce said in a release that citizenship questions had been included on previous censuses . Census Bureau has an obligation to determine "the whole number of persons in each state ".

Data breach at Saks Fifth Avenue targets customers' credit cards
Last week, for instance, Under Armour announced that 150 million accounts from MyFitnessPal were stolen in a data breach . Most of those are believed to be in the NY and New Jersey area, Gemini Advisory said.

Under pressure, Israeli leader nixes deal on African migrants
Naftali Bennett, leader of the nationalist Jewish Home party, earlier yesterday tweeted that the deal "is bad for Israel ". Given the lack of choices, Netanyahu said his deal with the United Nations refugee agency was the best available option.