Wednesday, 11 July 2018

  • Asian shares declined early on Wednesday as trade concerns returned to focus.
  • The U.S. government has released a list of $200 billion worth of Chinese goods to be hit with 10 percent tariffs.
  • U.S. stock index futures fell following the news; the dollar was softer against the safe-haven yen.

Trade developments returned to focus during Asian trade on Wednesday, with major markets in the region trading lower following the release of a list of an additional $200 billion in Chinese goods on which the U.S. is considering imposing tariffs.

The goods on the U.S. government’s list would be subject to 10 percent tariffs, according to a statement from U.S. Trade Representative Robert Lighthizer, who said his office will proceed with a public notice and comment period before the levies are officially imposed.

Japan’s Nikkei 225 fell 0.79 percent in early trade, the Kospi dropped 0.96 percent as South Korean exporters took a hit amid broad-based declines. In Australia, the S&P/ASX 200shed 0.22 percent.

U.S. stock index futures slipped further following the news. The implied open for the Dow Jones Industrial Average futures was more than 180 points lower at of 7:10 p.m. ET. The implied open for the S&P 500 and Nasdaq were also in the red.

On Tuesday, the Dow rose 0.58 percent, or 143.07 points, to close at 24,919.66 — the index’s fourth consecutive session of gains. The S&P 500 edged up by 0.35 percent to 2,793.84 and the Nasdaq composite finished higher by 0.04 percent at 7,759.20.

The dollar index, which measures the greenback against a basket of six major currencies  was up 0.1 percent to 94.214, moving off a nearly one-month low around 93.71 hit on Monday.The People’s Bank of China (PBOC) set the Yuan reference rate at 6.6234 vs.previous day’s close of 6.6405.

Source : Reuters

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