World Markets Lower on Tariffs,Tensions06/18 06:00
Global stocks were mostly lower Monday on concerns over trade tensions as
the U.S. and China scheduled the start of tariffs on each other's goods, and a
row over migrants in Germany brewed. Markets in China and Hong Kong were closed
for a holiday.
SINGAPORE (AP) -- Global stocks were mostly lower Monday on concerns over
trade tensions as the U.S. and China scheduled the start of tariffs on each
other's goods, and a row over migrants in Germany brewed. Markets in China and
Hong Kong were closed for a holiday.
KEEPING SCORE: European shares sank in early trading. Germany's DAX lost 0.6
percent to 12,936.10 and France's CAC 40 shed 0.5 percent to 5,477.31.
Britain's FTSE 100 dipped 0.1 percent to 7,626.71. Wall Street was poised to
open lower. Dow futures dropped 0.5 percent to 24,995.00 and broader S&P 500
futures were down 0.4 percent at 2,773.90.
ASIA'S DAY: Japan's benchmark Nikkei 225 index dropped 0.8 percent to close
at 22,680.33. South Korea's Kospi lost 1.2 percent to 2,376.24. Australia's
S&P/ASX 200 gained 0.2 percent to 6,104.10. Southeast Asian indexes were mostly
lower. Markets in China and Hong Kong were closed for the Duanwu Festival
commemorating the death of Qu Yuan, an ancient Chinese poet and minister.
U.S.-CHINA TARIFFS: Tariffs mooted by the world's two biggest economies are
set to take effect from July 6, bolstering fears of a trade war. President
Donald Trump has announced a 25 percent tariff on up to $50 billion of Chinese
products. China is retaliating by raising import duties on $34 billion worth of
American goods, including soybeans, electric cars and whiskey.
DISPUTE IN GERMANY: Chancellor Angela Merkel's Bavarian allies are tangled
in a dispute with the German leader over migration, a conflict that could
escalate into a threat to her government. Interior Minister Horst Seehofer, who
heads the Bavaria-only Christian Social Union, wants Germany to refuse migrants
who were previously registered as asylum-seekers in other European countries.
Merkel opposes unilateral action, arguing that it would weaken the 28-nation
European Union. A CSU leadership meeting on Monday will likely authorize
Seehofer to go ahead with his plan.
THE QUOTE: "Caution appears to be the key word for Asian markets today as
investors digest the potential implications of the U.S.-China tit-for-tat
tariff measures," said Selena Ling, chief economist at OCBC Bank.
ENERGY: Oil futures were mixed after reports that OPEC countries planned to
increase production of oil by as much as 1.5 million barrels a day. Benchmark
U.S. crude fell 32 cents to $64.74 a barrel in electronic trading on the New
York Mercantile Exchange. The contract lost $1.83 to settle at $65.06 per
barrel on Friday. Brent crude, used to price international oils, gained 62
cents to $74.06 in London.
CURRENCIES: The dollar inched down to 110.54 yen from 110.62 in late trading
Friday. The euro weakened to $1.1591 from $1.1607.