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The minute of the Monday market
- Global stocks retreat as Trump opens new fronts in trade war
- Reports suggest that the president will target the technology sector in the upcoming tariff move to thwart China's investment in the United States.
- As Asia plummets, Europe should open more weakly as tariff threats reduce risk appetite.
- Oil continues to decline as OPEC's decision on production adds supply, but investors are questioning the details.
- Wall Street futures are falling, with Dow declining by 140 points, due to the decline in its benchmark since the beginning of the year.
Snapshot of the market
Global equities weakened on Monday as investors reacted to the latest threats to President Donald Trump's tariffs that seek to intensify the trade war between Washington and its economic allies.
The President tweeted on Sunday that the United States was preparing "more than reciprocity" for trading partners who are imposing what it calls "artificial" barriers to US companies, a threat that suggests that reports of a plan to limit Chinese investment in US companies announced.
Trump's Tweets followed Friday's vow to hit new tariffs on European auto imports, a decision that sharply reduced the shares of German automakers on Friday and investors are increasingly convinced that levies will be taxed to markets around the world. global economic growth and stock market valuations.
The United States insists that all countries that have placed artificial barriers and tariffs on goods entering their country, remove these Barriers and Tariffs or meet more than the US Trade Reciprocity must be fair and no longer one way!
– Donald J. Trump (@realDonaldTrump) June 24, 2018
In Asia, stocks fell 0.8% despite the imminent publication of about 700 billion yuan ($ 108 billion) of cash after Sunday's reduction of the Chinese government's reserve requirement ratio by the government Chinese. Bank of China The MSCI Asia ex Japan index fell 0.91% at the close of the session, while Japan's Nikkei 225 started the week with a 0.78% decline to settle. at 22,228.15 points.
#HangSeng The index fell nearly 1.2% to reach 28,999 at one point, beating 29,000 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, the Stoxx 600 benchmark falling by 0.74% while the markets in France (-0.51%) and Spain (-1, 04%) recorded significant losses. The German DAX performance index was scored down 0.64% in the first 30 minutes of trading, with automakers such as Daimler AG (-1.4%), BMW AG (BMWYY) (- 1.08%) and Volkswagen (VLKAY) (-1.19%) leading the declines.
Early indications of US futures prices suggest that the sale will also affect Wall Street, with contacts related to the Dow Jones Industrial Average
Tech stocks should be back at the center of Monday's session, with a double report on the weekend, first in the Wall Street Journal, suggesting that President Trump will use the International Emergency Economic Powers Act of 1977 to limit investment. US technology companies by Chinese companies.
The reports also indicated that the US Treasury Department, the US Department of Commerce and the National Safety Council were drafting plans to introduce "enhanced" export controls, which could be unveiled as early as this week. .
Far from equities, the US dollar index, which compares the greenback to a basket of six global currencies, was marked 0.1% higher on the start of European trade at 94.615 while US Treasuries at 10 years were down 3 basis points to 2.886%. German bunds also favored a decline in risk appetite, with 10-year benchmark rates falling 2 basis points to 0.315%.
World oil prices also fell following Friday's sell-off following OPEC's decision to add more crude to the market by reducing members' compliance with the December 2016 drop in production. that the cartel does not specifically mention the number of barrels that could be released, market expectations are between 600,000 and 700,000 barrels per day, mainly due to increased production in Saudi Arabia and non-OPEC Russia.
Brent futures for delivery in August were marked with $ 1.30 after closing Friday in New York and $ 74.25 early in the session, while WTI contracts for the same month, the new price benchmark Americans, fell 21 cents to 68.37 dollars. barrel.
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