Global Stocks Tumble Tuesday 06/19 06:01
Global stock markets fell Tuesday after U.S. President Donald Trump
escalated a dispute with Beijing over technology policy by threatening a tariff
hike on an additional $200 billion of Chinese goods.
BEIJING (AP) -- Global stock markets fell Tuesday after U.S. President
Donald Trump escalated a dispute with Beijing over technology policy by
threatening a tariff hike on an additional $200 billion of Chinese goods.
KEEPING SCORE: In early trading, Germany's DAX plunged 1.8 percent to
12,606.14 and France's CAC 40 fell 1.4 percent to 5,372.20. London's FTSE 100
lost 0.8 percent to 7,565.81. On Monday, the DAX retreated 1.4 percent and the
CAC 40 shed 0.9 percent while the FTSE 100 lost less than 0.1 percent. Wall
Street looked poised for losses, with the future for the Dow Jones industrial
average off 1.6 percent and that for the Standard & Poor's 500 index off 1.3
ASIA'S DAY: The Shanghai Composite Index fell 3.8 percent to 2,907.82 and
Hong Kong's Hang Seng lost 2.8 percent to 29,468.15. Tokyo's Nikkei 225
retreated 1.8 percent to 22,278.48 and Seoul's Kospi gave up 1.5 percent to
2,340.11. India's Sensex shed 0.6 percent to 35,331.28 and Sydney's S&P-ASX 200
declined 0.6 percent to 6,102.10. Benchmarks in Taiwan, New Zealand and
Southeast Asia all declined.
TRADE TENSIONS: Trump directed the U.S. Trade Representative to prepare new
tariffs on $200 billion in Chinese imports, stepping up a dispute companies and
investors worry could drag down global trade and economic growth. Trump accused
Beijing of being unwilling to resolve the dispute over complaints it steals or
pressures foreign companies to hand over technology. China's Commerce Ministry
criticized the White House action as blackmail and said Beijing was ready to
ANALYST'S TAKE: "President Donald Trump's unwillingness to back down became
apparent this morning, once again sinking markets into a risk-off atmosphere,"
Jingyi Pan of IG said in a report. Pan said market attention turned to China
for "signs of further retaliation."
WALL STREET: U.S. stocks finished mixed in trading that ended before Trump
issued his tariff threat. Household goods companies took some of the worst
losses as the S&P 500 fell for the third time in four days. The S&P 500 fell
0.2 percent, while the Dow lost 0.4 percent. The Russell 2000 index of
small-cap stocks rose 0.5 percent. Many investors feel smaller and more
U.S.-focused companies are less vulnerable in the event of a major trade
ENERGY: Benchmark U.S. crude lost 88 cents to $64.97 per barrel in
electronic trading on the New York Mercantile Exchange. The contract rose 79
cents on Monday to $65.85. Brent crude, used to price international oils, fell
55 cents to $74.79 per barrel in London. The contract rose $1.90 the previous
session to $75.34.
CURRENCY: The dollar declined to 109.75 yen from Monday's 110.54 yen. The
euro edged down to $1.1552 from $1.1623.