Escalating trade fight weighs on integral stocks, boosts Treasuries, News, WSAU
By Laila Kearney
Fresh YORK (Reuters) – Total stock markets sank on Monday spil the trade fight inbetween the United States and other top economies escalated, and benchmark Wall Street indexes suffered their worst losses te more than two months while safe-haven investments gained.
U.S. Treasury Secretary Steven Mnuchin on Monday said forthcoming investment limitations would apply “to all countries that are attempting to steal our technology,” not just to China.
Hours zometeen, White House trade and manufacturing adviser Peter Navarro walked back Mnuchin’s remarks, telling CNBC that the limitations on investing te tech companies would just target China.
People are frightened,” said Wayne Kaufman, chief market analyst at Phoenix Financial Services ter Fresh York. “The market does not like uncertainty, and a trade war is something that is difficult, if not unlikely, to handicap.”
On Wall Street, the Dow Jones Industrial Media fell 328.09 points, or 1.33 procent, to 24,252.8, the S&P 500 lost 37.81 points, or 1.37 procent, to Two,717.07, and the Nasdaq Composite dropped 160.81 points, or Two.09 procent, to 7,532.01.
The pan-European FTSEurofirst 300 index lost Two.Nineteen procent and MSCI’s gauge of stocks across the globe shed 1.41 procent.
Technology stocks bore the brunt of the harm. The S&P technology index fell Two.Trio procent, the most among the major S&P 11 sectors.
Policymakers ter China moved quickly to temper any potential economic haul from Beijing’s dispute with the United States. Its central canap said on Sunday it would cut the amount of contant some banks voorwaarde hold spil reserves by 50 voet points to spur lending to smaller firms.
The European autos sector wasgoed kasstuk by trade tensions inbetween Washington and Europe, falling Two.Four procent ter a seventh straight day of losses after U.S. Voorzitter Donald Trump said on Friday he aimed to hike tariffs on European Union car imports by 20 procent.
The index of universal automaat manufacturers fell 1.Five procent.
A senior European Commission official said on Saturday the European Union would react to any U.S. stir to raise tariffs on cars made ter the bloc.
Harley-Davidson Inc said on Monday it would stir production of motorcycles shipped to the European Union from the United States to its international facilities and forecast the trading bloc’s retaliatory tariffs would cost the company $90 million to $100 million a year.
The growing disputes have led investors to take refuge on safer ground.
Benchmark U.S. 10-year Treasury notes gained Five/32 ter price to yield Two.884 procent, down from Two.900 procent late on Friday. The yield curve inbetween 2-year and 10-year notes flattened to 33 poot points, the lowest level since 2007.
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Gold hovered near last week’s six-month low spil investors chose Treasuries overheen bullion.
Oil fell spil investors ready for an reserve 1 million barrels vanaf day te output to succesnummer the markets after OPEC and its vrouwen agreed to raise production.
U.S. crude fell 0.73 procent to lodge at $68.08 vanaf barrel and Brent lodged at $74.73, down 1.09 procent on the day.
Te the currency market, the dollar index fell 0.22 procent, with the euro up 0.38 procent to $1.1699.
The Japanese yen strengthened 0.21 procent frente a the greenback, at 109.74 vanaf dollar, while sterling wasgoed last trading at $1.3279, up 0.08 procent.
The Turkish lira rose on expectations of a stable government after Tayyip Erdogan and his ruling AK Party claimed victory te presidential and parliamentary polls.
Bitcoin steadied after hitting seven-month lows overheen the weekend spil the security of cryptocurrency exchange operators came under more scrutiny.
(Extra reporting by Amanda Cooper te London, Sanjana Shivdas ter Bengaluru and Karen Brettell and Stephen Culp te Fresh York, Editing by Dan Grebler and Leslie Adler)