Stocks Continue to Fall as Uncertainty Over Trade Talks Persists
2019年5月8日 - 5:18PM
Dow Jones News
By Avantika Chilkoti
Global stocks continued to tumble on Wednesday as a familiar
worry threatens to end the unwavering rally that has defined 2019:
rising tensions in U.S.-China trade talks.
In Europe, the Stoxx Europe 600 was down 0.2% in morning
trading. In Asia, the Shanghai Stock Exchange dropped 1.1%, Hong
Kong's Hang Seng Index was also down 1.1% and Korea's Kospi dropped
0.4%.
Futures pointed to a tepid opening for U.S. indexes with the Dow
Jones Industrial Average and S&P 500 futures roughly flat.
It was sparring between the world's two largest economies that
dragged markets lower late last year. And a prolonged period of
calm in global markets ended abruptly this week, as trade
negotiations threatened to stall once again.
U.S. officials accused Beijing of reneging on its side of the
bargain and threatened to raise tariffs on $200 billion of Chinese
imports to 25% from Friday. Despite rising tensions, Beijing has
announced that top trade envoys will head to Washington Thursday to
resume negotiations ahead of that deadline.
It is unsurprising that the U.S. has increased pressure on China
in recent weeks, said Ed Smith, head of asset allocation research
at Rathbone Brothers Plc., the investment manager, given
expectations that talks will formally wrap up around the meeting of
G-20 leaders in Osaka in June--and President Donald Trump's usual
negotiating tactics.
"He loves a bit of brinkmanship and he particularly likes some
particularly vocal and belligerent brinkmanship," said Mr. Smith,
who is currently recommending defensive investments like the
FTSE100 and S&P 500 indexes, as well as sectors like beverages,
aerospace and defense.
After one of the largest drops ever at the beginning of the
year, the Cboe Volatility Index or VIX, a yardstick for expected
swings in equities, has picked up this week.
The 10-year U.S. Treasury ticked up to 2.462% from 2.448% on
Tuesday. Yields move inversely to prices. German 10-year government
bonds were still in negative territory at -0.037% as investors mull
the possibility that President Trump could soon ramp up trade
barriers for Europe too.
The WSJ Dollar Index, which tracks the dollar against a basket
of 16 currencies, was down slightly.
Investors will be watching closely when the Commerce Department
publishes the latest trade data on Thursday. Economists surveyed by
The Wall Street Journal forecast a widening in the deficit in
March. And the Labor Department will publish inflation figures
Friday, with economists expecting price growth to tick up on a
year-on-year basis.
Elsewhere in commodities, global benchmark Brent crude oil was
up 0.7% on Wednesday morning at $70.35.
Analysts at Commerzbank, point out that fresh tariffs could
weigh on demand, given the U.S. and China together make up around
one-third of global oil demand. But supply has also tightened and
U.S. sanctions are set to further quell oil shipments from Iran and
Venezuela, in particular.
This week, the U.S. announced it would step up its military
presence in the Middle East as part of a continuing move to
increase pressure on Iran.
Write to Avantika Chilkoti at Avantika.Chilkoti@wsj.com
(END) Dow Jones Newswires
May 08, 2019 04:03 ET (08:03 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
FTSE 100
指数チャート
から 3 2024 まで 4 2024
FTSE 100
指数チャート
から 4 2023 まで 4 2024