logo
Plus   Neg
Share
Email

Wall Street Sees Red On U.S Approval Of $50 Bln Tariff On China

wallstreet1 061318 lt

The market is reacting to President Trump's approval for $50 billion tariff on Chinese exports. Trump has noted that China is killing U.S. business. China has already announced a retaliatory tariff of $50 billion on automobile and pulses and said on Friday that the U.S. protectionist measures are harming its interest.

Initial trading on U.S. Futures Index is pointing to a lower opening for Wall Street.

Asian shares finished broadly higher, while European shares are in the red.

As of 7.15 am ET, the Dow futures were down 143.00 points, the S&P 500 futures were declining 11.00 points and the Nasdaq 100 futures were losing 20.75 points.

U.S. stocks closed mixed on Thursday. The Nasdaq advanced 65.34 points or 0.9 percent to 7,761.04. The S&P 500 also rose 6.86 points or 0.3 percent to 2,782.49, but the Dow edged down 25.89 points or 0.1 percent at 25,175.31.

On the economic front, the Federal Reserve Bank of New York's Empire State Manufacturing Survey for June will be published at 8.30 am ET. The market consensus is for 19.1, slightly down from 20.1 in the prior month.

Federal Reserve's Industrial Production data for May will be released at 9.15 am ET. The consensus is for 0.1 percent increase versus 0.7 percent increase in the prior month.

Consumer Sentiment for June will be issued at 10.00 am ET. The consensus is for 98.5, down from 98.0 in May.

Baker-Hughes Rig Count for the week will be published at at 1.00 pm ET. In the prior week, the North American Rig Count was 1174, while U.S. rig count was 1062.

Dallas Federal Reserve Bank President Robert Kaplan will participate in a moderated Q&A at the Fort Worth Chamber of Commerce Leaders in Business in Fort Worth, Texas, with audience and media Q&A at 1.30 pm ET.

The Treasury International Capital Data for April is scheduled at 4.00 pm ET. The Foreign Demand for Long Term U.S. Securities in March were $61.8 billion.

In the corporate sector, Volkswagen Group reported Group deliveries in May of 953,400 units, up 6.1 percent from last year. A total of 416,400 new vehicles were handed over to customers in the European market in May - an increase of 5.8 percent.

Asian stocks turned in broadly higher on Friday. Chinese shares hit a 20-month low. The benchmark Shanghai Composite index fell 22.26 points or 0.73 percent to 3,021.90, its lowest level since September 2016.

Hong Kong's Hang Seng index dropped 130.68 points or 0.43 percent to 30,309.49. The nation's central bank adjusted its interest rate upward after the U.S. Federal Reserve hiked its key rate by a quarter point.

Japanese shares rose and the yen weakened. The Nikkei average climbed 113.14 points or 0.50 percent to 22,851.75 while the broader Topix index closed 0.29 percent higher at 1,789.04.

Australian shares rose sharply. The benchmark S&P/ASX200 rallied 77.40 points or 1.29 percent to 6,094 while the broader All Ordinaries index ended up 1.23 percent at 6,205.30.

European shares are trading mixed. France's CAC 40 is climbing 6.54 points or 0.12 percent. Germany's DAX is down 37.93 points or 0.29 percent. FTSE 100 of U.K. is declining 59.27 points or 0.76 percent. Swiss Market Index is falling 29.33 points or 0.33 percent.

Eurozone's leading Blue Chip index,Euro Stoxx 50, is progressing 0.21 percent.

For comments and feedback contact: editorial@rttnews.com

Follow RTT