Wall Street tumbles on lingering trade war anxiety, Boeing and industrial stocks slide

Posted March 15, 2018 07:29:34

Australian shares are headed for another slide this morning, as Wall Street is on edge about the potential for a trade war between China and America.

Markets at 7:05am (AEDT):

  • ASX SPI 200 futures -0.1pc, ASX 200 (Wednesday’s close) -0.7pc at 5,935
  • AUD: 78.8 US cents, 56.4 British pence, 63.7 Euro cents, 83.74 Japanese yen, $NZ1.07
  • US: Dow Jones -1pc at 25,752, S&P 500 -0.6pc at 2,750, Nasdaq -0.2pc at 7,497
  • Europe: FTSE -0.1pc at 7,133, DAX +0.1pc at 12,238, Euro Stoxx 50 -0.2pc at 3,392
  • Commodities: Brent crude +0.2pc at $US64.78/barrel, spot gold flat at $US1,325.44/ounce

US investors reacted negatively to a Reuters report President Donald Trump may be looking to impose additional tariffs on Chinese imports, targeting the technology, telecommunications and apparel sectors.

The Trump administration is pressing China to cut its trade surplus with the United States by $US100 billion, the White House said on Wednesday.

Once again, industrials, a sector which relies heavily on steel, was among the worst-performing sectors overnight.

In particular, stocks in aeroplane maker Boeing plunged by almost 3 per cent, and was the biggest drag on the Dow Jones Industrial Average.

The Dow has dropped by 248 points, or 1 per cent, to 24,758.

As for the S&P 500 and Nasdaq, they fell by 0.6 and 0.2 per cent respectively.

The market’s concerns about a trade war were weren’t helped by last week’s resignation of former chief economic adviser Gary Cohn, a strong supporter of free trade, and Mr Trump’s firing of secretary of state Rex Tillerson yesterday.

The Australian dollar was stronger across the board, rising 0.3 per cent to 78.8 US cents at 7:00am AEDT.

It also lifted against the British pound (+0.2pc), euro (+0.5pc) and New Zealand dollar (+0.2pc), but was steady against the Japanese yen.

More to come.

Topics: business-economics-and-finance, stockmarket, markets, currency, economic-trends, company-news, united-states, australia

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