The new trade threat drives up global equities

Futures posted a 0.7% opening loss for the S & P 500 driven by mining, auto and oil and gas stocks. Asian markets closed down, with Shanghai recording some of the biggest losses.

The Trump administration announced Tuesday that it was going to assess 10% tariffs on an additional $ 200 billion worth of Chinese goods. The tariffs, which will not come into effect for at least two months, cover a variety of Chinese products, including tuna, salmon and other fish, luggage, tires, dog leashes, handbags, baseball gloves, furniture, clothes and mattresses. 19659004] China described this measure as "totally unacceptable" in a statement attributed to a spokesman for the anonymous ministry and promised to launch unspecified countermeasures.

Shares of commodity companies were hardest hit. by strengthening the dollar. The WSJ Dollar Index, which measures the US currency against 16 others, rose 0.4%

Copper futures declined 2.5% to lows of one year . The metal, considered by many analysts as a barometer of global economic health, has been particularly affected by the escalation of trade concerns.

The gradual escalation of trade actions raises concerns for global growth

Kristin Magnusson Bernard,

Global Head of Macroeconomic Research at Nordea Bank. According to her, product-specific tariffs can lead to price increases for US consumers, and companies could reduce their investments in the face of heightened uncertainty and potential supply chain disruption. . the last rate cycle. "Instead of opting directly for US products, China could reduce the rates of non-US trading partners, which would have a more dilutive effect and divert money from US products," Kash Kamal said. Partner of BMO Capital Markets. Oil and gas companies also fell sharply in Europe, the Brent crude, the world benchmark, having deviated gains early in the week, falling 2.3% to 77.07 dollars a barrel. Prices have been under pressure after Libya said it would resume export activities in its eastern ports.

BP's shares fell by 2.3% and Royal Dutch Shell shares decreased by 1.7%

and utilities outperformed banks and automakers, which fell sharply under the effect of trade tensions

The European automotive sector fell 1.9% on Wednesday, bringing its losses to 10% this year.

Analysts expect S & P 500 corporate profits to grow about 20% in the second quarter compared to the second quarter. the previous year, according to FactSet.

If stocks go down, it will not be due to profits,

Bob Phillips,

Managing Director at Spectrum Management Group, said. Instead, the "slumping trade war" would drive down stocks, Phillips said.

Meanwhile, US President Donald Trump on Wednesday reiterated his criticism of what he sees as insufficient military spending by European allies. Hong Kong's Hang Seng fell 1.3% due to losses suffered by technology companies and China's Shanghai Composite Index fell 1.8%, posting a three-game winning streak. days. Japan's Nikkei fell by 1.2% and South Korea's Kospi by 0.6%

With stocks declining, 10-year Treasuries dropped to 2.841% from 2.873% on Tuesday. Yields Decline as Prices Increase

– Bob Davis and David Hodari contributed to this article.