Monday, 18 June 2018
- Asian markets slipped on Monday as investors digested U.S.-China trade tensions.
- The U.S. said it will impose tariffs on $34 billion in Chinese goods beginning July 6. China quickly announced its retaliation.
- Oil prices slumped amid trade jitters and ahead of OPEC’s meeting later this week.
Asian markets slipped on Monday as investors digested the escalation in trade tensions between the U.S. and China after both countries announced tariffs last week.
Trade is likely to be top of mind for investors after the Trump administration last week said it will impose a 25 percent tariff on a list of 818 items of Chinese goods worth around $34 billion beginning July 6. Measures affecting an additional 284 products worth $16 billion will be subject to review before taking effect.
In response, China said a 25 percent tariff will be implemented on U.S. goods, including soybeans and electric vehicles, worth $34 billion starting July 6. Another list of U.S. imports worth $16 billion will be subject to review before being applied.
Despite the latest dust-up on the trade front, U.S. stocks finished the last session well off the day’s lows. The Dow Jones industrial average slipped 0.34 percent, or 84.83 points, to close at 25,090.48, after losing as much as 280.93 points earlier.
On the energy front, oil prices extended losses after slumping in the last session ahead of OPEC’s meeting in Vienna later this week. The declines also came amid the trade jitters, as energy products had been included in the list of additional U.S. goods that China could target at a later date.
Brent crude futures edged down by 0.48 percent to trade at $73.09 per barrel after settling more than 3 percent on Friday. U.S. crude futures declined 1.15 percent to $64.31.
In foreign exchange, the dollar index, which tracks the dollar against a basket of currencies, last stood at 94.873.
Source : Reuters