Money Stocks sink as trade war heats up with new tariff threats

18:51  11 july  2018
18:51  11 july  2018 Source:   msn.com

Trump has attacked Canada, Europe, and Mexico for their trade barriers — here's how tariffs in every country measure up

  Trump has attacked Canada, Europe, and Mexico for their trade barriers — here's how tariffs in every country measure up President Donald Trump defends his new tariffs by claiming other countries are "taking advantage" of the US. But other major economies do not maintain much higher tariff levels than the US. The US, Australia, Canada, and Japan all have average applied tariff levels under 5%, while the European Union and Mexico are not much higher.The US is more protectionist by other trade measures than its allies.President Donald Trump has said that the current trade battles with key US allies are necessary because other countries are "taking advantage" of the US.

The tit-for-tat has rattled stock markets on worries over a full-blown trade war between two of the world’s largest economies. However, if China matched the White House’s threats to subject as much as 0bn in Chinese goods to tariffs , it would more than cover total US exports to the country.

President Trump on Monday directed the U.S. Trade Representative to prepare new tariffs on 0 billion in Chinese imports as the two nations moved closer to a potential trade war . The tariffs , which Mr. Trump wants set at a 10 percent rate

FILE - In this Oct. 25, 2016, file photo, a pedestrian walks past the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EDT on Wednesday, July 11, 2018. (AP Photo/Mary Altaffer, File): In this Oct. 25, 2016, file photo, a pedestrian walks past the New York Stock Exchange. © The Associated Press In this Oct. 25, 2016, file photo, a pedestrian walks past the New York Stock Exchange.

NEW YORK — Global stock indexes are falling Wednesday after the Trump administration released a list of $200 billion in goods that could be hit with tariffs and China said it would to retaliate. Energy and industrial companies and basic materials makers are taking some of the worst losses.

KEEPING SCORE: The S&P 500 index lost 10 points, or 0.4 percent, to 2,783 as of 11:10 a.m. Eastern time. The Dow Jones Industrial Average dropped 123 points, or 0.5 percent, to 24,796. The Nasdaq composite fell 26 points, or 0.3 percent, to 7,732. The Russell 2000, an index of smaller and more U.S.-focused companies, gave up 4 points, or 0.2 percent, to 1,691.

Investors should watch these 2 big events in 2018

  Investors should watch these 2 big events in 2018 John Traynor of People's United Advisors breaks down the two things investors should keep an eye on in the second half of 2018."We think the earnings growth is very strong, we think the economy is very strong, but you're being buffeted by those two trends, and they will impact the second half of the year," Traynor said.

Stocks tumbled Friday as trade tensions between the United States and China heated up . Related: Trump threatens China with new 0 billion tariff plan. "The fear of a policy mistake on trade is increasing," said Art Hogan, chief market strategist at B. Riley FBR.

Other countries could benefit if China hits US exporters with new tariffs . The threat of a trade war could dampen sentiment, slowing consumer spending and business investment. Warning comes as Donald Trump steps up war of words with key trading allies.

The S&P 500 had risen for four days in a row and it closed at a five-month high Tuesday.

TARIFF THREATS: The Trump administration's list includes vacuum cleaners, furniture and car and bicycle parts but not U.S.-branded smartphones and laptops. It is scheduled to make a decision on the potential tariffs after Aug. 31.

China's government said it will take "firm and forceful measures" if the new tariffs are enacted. Chipmakers, which make large portions of their sales in China, took some of the worst losses. Nvidia fell 1.6 percent to $249.09 and Micron Technology lost 2.7 percent to $54.26.

Among industrials, Caterpillar lost 2.2 percent to $138.15 and farm equipment maker Deere lost 1.8 percent to $142.

WHAT NEXT? On Friday the U.S. and China put 25 percent taxes on $34 billion in imports and President Donald Trump has said nearly all imports from China, some $500 billion in goods, could be taxed. China imported only $130 billion in goods from the U.S. last year but could retaliate through other means including regulatory moves and investigations of U.S. companies.

This American Cargo Ship Is Racing to China to Beat a Huge New Tariff on the Soybeans it's Carrying

  This American Cargo Ship Is Racing to China to Beat a Huge New Tariff on the Soybeans it's Carrying A ship carrying U.S. soybeans is steaming toward northern China in a race to beat a 25 percent tariff. Peak Pegasus is expected to arrive in Dalian on Friday, the same day that China is scheduled to impose tariffs on imports from the U.S., according to shipping data compiled by Bloomberg and a person familiar with the matter. If it arrives as scheduled, it should be able to clear customs before the tariffs are imposed, according to the person, who asked not to be identified because they’re not authorized to speak to the media. Ship-tracking data currently shows it arriving at about 5 p.m. local time.

China is retaliating with new tariffs on US goods as trade tensions continue to escalate. China and America continue to trade tariff threats - Продолжительность: 3:16 RT Trade war retaliation: China slaps US with up to 25% bigger import tariffs - Продолжительность: 3:04 RT 124 189 просмотров.

Trump sets sight on SINKING Merkel's economy: US-EU trade war could spark CRISIS - Продолжительность: 9:17 EU to respond to Trump’s trade war with tariffs on US whiskey, orange juice and peanut butter - Продолжительность: 7:17 ProductiehuisEU 1 025 просмотров.

Indexes in Europe and Asia took steeper losses as investors worried the worsening trade dispute will hamper the growth of the global economy.

The trade dispute stems from Washington's complaint that Beijing steals or pressures companies to hand over technology and concerns that plans for state-led development of Chinese champions in robots and other fields might erode American industrial leadership.

OVERSEAS: France's CAC 40 lost 1.4 percent and the DAX in Germany fell 1.4 percent as well. Britain's FTSE 100 index dropped 1.1 percent.

Japan's benchmark Nikkei 225 fell 1.2 percent and South Korea's Kospi lost 0.6 percent while Hong Kong's Hang Seng shed 1.3 percent.

GROUNDED: Airlines took sharp losses after American said it expects slower fare growth in the U.S. American slumped 5.5 percent to $36.97 and United Continental slid 2.9 percent to $69.24.

ENERGY: Benchmark U.S. crude fell 1.3 percent to $73.12 a barrel in New York. Brent crude, used to price international oils, lost 2.3 percent to $77.03 a barrel in London.

Trump says China could face more than $500 billion in U.S. tariffs

  Trump says China could face more than $500 billion in U.S. tariffs Trump says China could face more than $500 billion in U.S. tariffs.Load Error

Dow falls 572 points as Donald Trump and China issue fresh tariff threats as trade war looms. Stocks were under pressure Friday as China vowed to fight back "Escalation of the U.S.-China dispute has entered a new phase," David Fernandez of Barclays Bank in Singapore told clients in a report.

The major indexes as well as tech stocks tumbled despite Trump officials downplaying any likelihood new tariffs would be enacted.

Chevron sagged 2.5 percent to $124.45 and ConocoPhillips fell 1.3 percent to $70.83.

PRICES RISING: The Labor Department said wholesale prices kept rising in June. Excluding food and gas prices, which can be volatile, the department's index of producer prices has risen 2.8 percent over the last year. That's the fastest pace in six years and a sign inflation is picking up after years of weakness.

Investors have worried that the Federal Reserve will raise interest rates more quickly as inflation increases. The Fed wants inflation to stay at around 2 percent, but it suggested recently that it won't act too quickly if inflation goes above the 2 percent mark.

REACH FOR THE SKY: Twenty-First Century Fox raised its offer for European pay TV service Sky. Fox already owns 39 percent of Sky and wants to buy the rest, but rival Comcast has stepped in with its own bid. Fox says the new offer values Sky at $32.5 billion.

Fox lost 3.8 percent to $47.89. In the U.K., Sky stock fell 0.2 percent.

BONDS: Bond prices ticked higher. The yield on the 10-year Treasury note fell to 2.86 percent from 2.87 percent.

The dip in bond yields helped utility companies make small gains. Utility companies tend to pay large dividends, so investors who want income often buy them when bond yields fall. Real estate investment trusts, which also pay large dividends, fell less than the rest of the market.

CURRENCIES: The dollar edged up to 111.31 yen from 111.28 yen. The euro edged fell to $1.1718 from $1.1745.

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AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jay

Energy, pot stocks pull Toronto market lower .
Canada's main stock index closed in the red as a drop in crude prices pushed energy stocks lower, while U.S. stocks were mixed. The August crude contract fell $2.95 or 4.15 per cent to close at US$68.06 after U.S. officials toned down threats against countries and businesses who buy Iranian oil.Treasury Secretary Steven Mnuchin and Secretary of State Mike Pompeo said those who import Iranian oil after sanctions return in November could avoid penalties if they reduce those imports significantly, rather than cut off the trade entirely.

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