[ad_1]
By Shinichi Saoshiro
TOKYO (Reuters) – Global stock markets extended their sales on Tuesday as rising trade tensions between the US and other major economies drove investors away from riskier assets as Chinese markets were hit hardest by the US. investor anxiety.
Spreadbetters expected European equities to open slightly higher after the strong losses of the previous day, with the UK FTSE up 0.25%, the German DAX 0.35% and the French CAC 0.25%.
The tense atmosphere has raised demand for US Treasuries and has kept the dollar on the defensive as financial markets worried about the overall economic impact of the "America First" agenda of the US Treasury. Trump administration.
Asian stocks were down after the fall of Wall Street, the S & P 500 and Nasdaq having suffered their largest losses in more than two months overnight. [.N]
The broadest index of MSCI Asia Pacific shares outside Japan decreased by 0.27%.
The Hong Kong Hang Seng fell 0.2%, the Shanghai Composite Index 0.8% and the Japanese Nikkei 0.1%, after reducing most of its previous losses.
Technological indices such as the South Korean KOSPI and Taiwan Weighted Index fell by 0.45% and 0.55% respectively.
Taiwan Semiconductor Manufacturing Co. lost 1.8%, South Korean chip maker SK Hynix Inc lost 1% and Japanese Tokyo Electron lost 0.6%. Chinese tech giant Tencent Holdings lost 0.3%.
Asian tech stocks slid after US peers, who derive most of their sales revenue from China, stormed overnight.
On Monday, the US Treasury Department drafted restrictions that would prevent companies with at least 25 percent of Chinese owners from investing in US technology companies.
"Unlike President Trump's tweets and retaliatory tariff exchange, Washington's attempt to protect intellectual property is at the heart of a conflict between two powers struggling for future global supremacy," he said. Yoshimasa writes. Maruyama, chief economist at SMBC Nikko Securities in Tokyo.
In addition to the trade dispute with China, the United States has recently risen to the challenge of a European Union challenge by threatening tariffs on cars imported from the bloc.
"The increasingly aggressive commercial rhetoric that the United States employs could have an impact on the economy by cooling investor confidence and reducing corporate capital spending," said Masahiro Ichikawa, strategist at Sumitomo. Mitsui Asset Management.
"It is proving to be a long-term bearish factor for the financial markets, as the US will probably not retreat at least through its mid-term elections (in November)."
The dollar index versus a basket of six major currencies plunged 0.1 percent to 94.202 and was heading towards its fifth consecutive day of losses.
The greenback was under pressure as long – term yields in the US Treasury dropped to lows of one week, as prices rose due to heightened risk aversion on the financial markets.
The euro added to yesterday's gains and hit a two-week high of $ 1.1722.
The dollar was down 0.3 percent to 109,460 yen, having fallen to a two-week low of 109,365 on Monday. The yen often attracts safe havens in times of political turmoil and market turmoil.
Brent crude oil futures increased 0.15% to $ 74.83 due to uncertainty over Libya's ability to meet its export commitments. Brent futures had dropped 1% overnight as the decline in investor risk appetite weighed on commodities. [O/R]
Oil prices were capped after OPEC and its allies agreed Friday to increase the global supply, albeit modestly.
Trade concerns have kept copper at the London Metal Exchange near a 2 and a half year low of $ 6,702.5 a ton on Monday. Spot gold lost 0.1% to $ 1,263.62 an ounce.
(Report by Shinichi Saoshiro, edited by Shri Navaratnam and Eric Meijer)
[ad_2]
Source link
