Trump vows China deal will happen but defends trade battle

May 15 23:00 2019

Beijing on Monday imposed a tariff hike on US goods following Washington’s decision last week to hike its levies on Chinese imports. At the S&P 500, only a few dozen companies moved higher, but majority were in the utility sector that tends to not react to big broad market moves.

Chipmakers enjoyed a reprieve, with the Philadelphia SE Semiconductor Index rising 2.4 per cent after suffering its worst one-day percentage loss since January 3. The stocks of Apple Inc. slumped 5.8 percent and chipmaker NVIDIA fell 6.1 percent.

In the cash market in Asia at 07:01 GMT, Japan’s Nikkei 225 Index is trading 21067.23, down 124.05 or -0.59 percent.

The market had also seemed to shrug off the news that growth in China’s industrial output had slowed more than expected, Ms Lee said.

Federal Reserve’s NY chief John Williams, a voter in the interest rate setting committee this year, said the recent USA tariffs imposed on Chinese goods will boost US inflation and could dampen economic growth.

The Russell 2000 Index of small-cap stocks slipped into correction territory. “Its stock markets could sustain its recovery if the government indicates it will continue to keep supporting the economy”, Hirayama at SMBC Nikko Securities said. Iranian President Hassan Rouhani said that it would begin stockpiling heavy water and low-enriched uranium unless non-U.S. signatories take steps to shield the Iranian economy from Trump-Administration sanctions that have been crippling its economy.

With his move to raise tariffs on $200 billion in Chinese imports last week and to order up plans for tariffs on all further trade from China, Trump has deployed import taxes on a scale not seen in decades, with some economists reaching as far back as the 19th century for comparisons.

Deere & Co fell 1.8% after JP Morgan downgraded shares of the tractor maker to “underweight” from “neutral”.

More importantly, from a price perspective the downtrend that had been formed since prices started pulling back from the peak on the likes of the comprehensive S&P 500 index, as shown in the chart below, still remains intact.

In commodities, USA crude futures were down 0.55% at $61.44 per barrel after the American Petroleum Institute (API) reported a bigger-than-expected build in crude oil inventory. The yield on the 10-year Treasury rose to 2.41% from 2.40%.

The Dow is up 2,204.59 points, or 9.4%. The Q1 economic data helped change his mind. The S&P 500 is up more than 13 percent this year. “Obviously, it may create some distortion in the market and this is what we want to avoid”.

Teva, which was specifically mentioned, sank 14.8%.

Ride-sharing company Uber tumbled another 11.5% on its first full day of trading following its rocky debut on the stock market Friday. The stock had priced at $45 at its initial public offering.

West Texas Intermediate crude dipped 1% to $61.11 a barrel.

The euro fell 0.1% to $1.1214.

The dollar fell to 109.34 Japanese yen from 109.90 yen on Friday.

Other investments deemed as safe havens dropped, such as US government bonds and gold.

Traders work on the floor at the New York Stock Exchange

Trump vows China deal will happen but defends trade battle
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