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Monday's market minute
- Global equities are in fashion as Trump raises the rhetoric of the trade war to a higher level, firing bursts on both US companies and the Chinese government, pushing investors to safe havens and the dollar.
- Official data show that China's trade surplus rose 15 percent to $ 192.64 billion in the first eight months of the year, with August's increase to $ 31.05 billion. dollars.
- Apple's European suppliers weaken after the Trump target is the world's largest technology company for its China-based production, warning consumers to pay higher prices when tariffs are launched.
- Treasury bill yields rise as investors re-establish interest rate expectations after Friday's payroll data, showing that wages in August have risen the most in nine years.
- World oil prices post solid gains as investors wait for sanctions on Iran's crude oil and react to China's import data.
- US equity futures hold modest gains, with the Dow being 30 points higher than near Friday's level, but the cautious tone of the global markets could limit prices to the trading session of today. ; hui.
Snapshot of the market
Global markets began the week with caution as markets in Europe and Asia were mixed and the US dollar was strong, with investors focusing on developments in the Washington-Beijing trade war. on two American bluechip companies, as well as the Chinese government, on America's growing trade deficit with the world's second largest economy.
Friday's salvo from Trump to China, during which he threatened to take the level of US duties applied to China after $ 500 billion, was followed on Saturday by a series of Tweets for Ford Motor Co. AAPL), two companies with significant overseas operations that had already escaped the wrath of the president. Trump blasted Ford for building its Focus Active in China and warned that Apple's final consumer prices could rise due to its planned rates.
The price of apples may increase because of the huge tariffs we charge China, but there is a simple solution, where there would be a zero tax and even a tax incentive. Make your products in the United States instead of China. Start building new plants now. Exciting! #MAGA
– Donald J. Trump (@realDonaldTrump) September 8, 2018
The messages were quickly followed by data from the Chinese customs office, which showed that the country's trade surplus stood at $ 31.05 billion in August, despite the first round of tariffs of $ 50 billion. a peak of $ 192.64 billion for the first eight months of the year, up 15% from the same period in 2017.
The threat of possible retaliation on the part of Beijing, if Trump was to keep his promise to bring the overall tariff regime to $ 517 billion, has dampened gains for Asian stocks, especially the yuan off What might be the initial signal from policymakers that they are willing to weaken the currency in retaliation for any escalation of the trade war?
The ex-Japan MSCI Asia Index was 0.9% lower at the last trading hours, with the US dollar index gaining 0.16% versus a basket of its global peers at 95.517 at the start of the year. European negotiation. Dollar gains, driven by safe haven flows, pushed the yen slightly to 110.93, allowing Japan's Nikkei 225 to record its first gain in five sessions.
However, US equity futures were still trying to retain their previous gains, and while the Dow Jones Industrial Average contracts were 30 points higher than their Friday close, they fell more than 30 points in the minute. European opening. have contacts related to the S & P 500, which indicate an increase of 4.77 points for the broader benchmark.
European stocks were just as cautious at the opening, with the Stoxx Europe 600 down 0.04% while the German and French markets fell by 0.15% while the euro fell by 1.1551 against the US dollar. comments on Apple. The UK FTSE 100 also did not benefit from the decline in the pound, which slipped to 1.2910, while core values remained on the sidelines due to fears of slowing global economic growth.
Several securities of the European supply chain of Apple were significantly weaker at the beginning of negotiations with the Austrian company AMS AG (AMSSY), which derives about 35% of its sales business turnover chips at Apple and 1.72% at Dialog Semiconductor (DLGNF) down 2.52% and STMicroelectronics (STM) down 1.7% in Amsterdam.
Far from equities, US Treasury bond yields continued to rise after Friday's August non-farm payroll data, which showed that the average hourly wage rose by 2.9% in at least nine years. Jobs and investors are banking on faster rate hikes in the short term from the Federal Reserve. Bonds with 2 years of reference were marked at 2.703% in early trading in Europe, while 10-year bonds were observed at 2.937%.
World oil prices were also up, as investors began to calibrate markets for impending sanctions on the sale of Iranian crude, which came into effect in November, and reacted to data from the Chinese customs office. to a peak of 38.38 million tonnes over three months, or 9.04 million barrels per day.
Brent Contracts for delivery in November, the global benchmark, were 70 cents higher than their Friday closing in New York and $ 77.53, while WTI contracts for the same month
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