Global equities begin the quarter with losses due to a rising commercial rhetoric and declines in sales. appetite for risk.
The Dow Jones Industrial Average lost 160 points, or 0.6%, to 24110 shortly after the opening bell. The S & P 500 fell 0.7% and the Nasdaq Composite declined 0.8%.
The Stoxx Europe 600 fell by 0.9%, weighed down by declines in banks and commodity-related companies. The markets in Japan and South Korea recorded their biggest losses in three months.
Analysts pointed out that the lingering uncertainty surrounding global trade was a catalyst for movement. President
Donald Trump
He said he saw his threat to impose global car tariffs as his biggest weapon for concessions from trading partners, while his administration is considering a proposal to impose 20% levies on imported vehicles. China, meanwhile, has promised to cut tariffs on imported cars on Sunday, but Beijing is preparing to impose an additional 25 percent tariff on US auto imports on Friday.
Many investors expect that far beyond the auto sector, after the Trump administration has already imposed duties on steel and aluminum.
"It's very hard to isolate winners and losers because the global supply chain is so integrated"
Talbot Babineau,
However, "we do not think it will degenerate into any point of economic destruction," he said, noting that current tariffs still represent a small percentage of world trade. and the negotiations could lead to a more open Chinese economy.
Disappointing readings on the global manufacturing sector added disappointing tone Monday, badysts said. Manufacturing activity in the eurozone slowed down in June, and slightly more than previously, the IHS data company Markit announced on Monday, warning of production bottlenecks.
The confidence of major Japanese manufacturers weakened for the second consecutive quarter. According to a central bank survey, while private indicators reveal that growth in the Chinese manufacturing sector slowed in June, growing fears about the potential impact of trade frictions were lower in June
. are worried the uncertainty created by the trade can simply exacerbate this, "said
John Stopford,
Multi-Asset Income Manager at Investec Asset Management.
That said, "Many people are now pessimistic, the positioning is shorter, investors are more cautious, and typically it's not a bad environment [for markets] as long as the underlying fundamentals hold steady ".
In Asia, the South Korean Kospi fell 2.3%, led by energy, materials and industrial firms. The Nikkei Stock Average of Japan fell by 2.2% due to weak consumer stocks. Both recorded their greatest daily losses since March.
Oil and gas companies and mining companies have generally tracked declines in commodity prices. Brent crude oil was down 1.1% to 78.35 dollars a barrel after strong gains last week.
The Shanghai Composite Index fell 2.5% to its lowest since early 2016, when fears of the Chinese economy. Investors feared that Beijing's firm stance on deleveraging has not changed, putting pressure on the stock market.
The yuan was lower against the dollar after the dollar's 3.4% fall against the greenback last month
Elsewhere in foreign currencies, the WSJ Dollar index, which tracks the dollar compared to a basket of 16 others, was up 0.3%.
The Mexican peso was down 0.7% against the dollar after the Mexican Electoral Institute said Sunday that the leftist candidate
Andrés Manuel López Obrador
won the presidential election of the country with a wide margin.
The euro was down 0.5% to $ 1.1635 because of concerns about the stability of the German government. The German Minister of the Interior has raised the stakes of his showdown against immigration with the Chancellor
Angela Merkel,
He said he was ready to step down after dismissing as insufficient a plan from the European Union to limit capital inflows.
European stocks jumped on Friday in response to the EU's agreement on migration. With the euro and the pound under pressure, European indices with a larger share of foreign revenues, such as the UK FTSE 100 Index and the German DAX, outperformed the more locally oriented markets.
Despite the drop in inventories, there seemed to be limited appetite for traditional market markets on Monday. The dollar remained stable against the yen and up against the Swiss franc, while gold was down 0.3% to $ 1,250.90 an ounce
–
Shen Hong
and Nina Adam contributed to this article
Write to Riva Gold at [email protected]
