{"id":122455,"date":"2018-03-02T07:02:43","date_gmt":"2018-03-02T12:02:43","guid":{"rendered":"http:\/\/countingpips.com\/?p=122455"},"modified":"2018-06-01T15:42:17","modified_gmt":"2018-06-01T15:42:17","slug":"trumps-import-tariffs-spur-trade-war-fears","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/03\/trumps-import-tariffs-spur-trade-war-fears\/","title":{"rendered":"Trump\u2019s import tariffs spur trade war fears"},"content":{"rendered":"
March 2, 2018<\/div>
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By IFCMarkets<\/a><\/p>\n

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S&P 500 logs third straight decline<\/h2>\n<\/div>\n<\/div>\n

US stock market\u00a0<\/b>selloff continued on Thursday as President Trump announced his intentions to put tariffs on steel and aluminum imports.\u00a0Dow Jones\u00a0<\/em>industrial average tumbled 1.7% to 24608.98. The\u00a0S&P 500\u00a0<\/em>lost 1.3% to 2677.67 led by industrial stocks with all 11 sectors finishing in the red. The\u00a0Nasdaq\u00a0<\/a>composite fell 1.3% to 7180.56. The dollar weakened as Powell moderated his hawkish comments: the\u00a0live dollar index<\/a>\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, fell 0.5% to 90.19. Futures point to mixed openings today.<\/p>\n

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Stocks erased earlier gains after President Trump told steel and aluminum executives gathered at the White House that the US would set tariffs of 25% for steel and 10% for aluminum. The imposition of tariffs is feared to spark retaliatory measures by US trade partners and push prices higher, adding to inflation concerns that caused the recent market rout. At his Senate testimony Powell said there is no evidence the economy is overheating as \u201cnothing suggests wage inflation is at the point of acceleration\u201d. Powell\u2019s speech was seen as less hawkish than his comments before House committee on Tuesday which pushed Treasury yields higher and sent all three mains stock indices sharply lower. While Powell\u2019s Senate comments were interpreted as less hawkish and tamping down fears the Fed may shift to more aggressive policy stance, four rate hikes in 2018 remain a distinct possibility. Thus, New York Fed President William Dudley said that four rate increases was within the realm of a \u201cgradual\u201d hiking trajectory, and Thursday\u2019s economic data were better than expected: personal income growth was steady at 0.4% in January while an 0.3% growth was expected, and the ISM\u2019s manufacturing report for February came in at above expected 60.8, the highest since May 2004.<\/p>\n

\"NASDAQ\"<\/p>\n<\/div>\n<\/div>\n

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European stocks slide<\/h2>\n<\/div>\n<\/div>\n

European stocks\u00a0<\/b>dropped further on Thursday as disappointing earning reports failed to lift market sentiment bruised by Fed\u2019 chair Powell\u2019s hawkish Tuesday testimony. Both the\u00a0euro\u00a0<\/em>and\u00a0British Pound\u00a0<\/em>turned higher against the dollar. The Stoxx Europe 600 index fell 1.2%. Germany\u2019s\u00a0DAX 30\u00a0<\/a>tumbled 2% to 12190.94. France\u2019s\u00a0CAC 40\u00a0<\/em>dropped 1.1% and UK\u2019s\u00a0FTSE 100\u00a0<\/em>lost 0.8% to 7175.64. Indices opened 0.4%-0.8% lower today.<\/p>\n

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Markets got little help from economic data either: the final February reading of the euro-zone\u2019s manufacturing PMI came in at 58.6, down from January\u2019s 59.6.<\/p>\n<\/div>\n<\/div>\n

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Asian markets retreat<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b>\u00a0are falling today as fears of a rise in protectionist policies after Trump\u2019s announcement of steel and aluminum import tariffs undermined market sentiment.\u00a0Nikkei\u00a0<\/em>extended losses slumping 2.5% to 21135.50 as yen grew stronger against the dollar. Chinese stocks are sliding: the\u00a0Shanghai Composite Index\u00a0<\/em>is 0.6% lower and Hong Kong\u2019s\u00a0Hang Seng Index\u00a0<\/em>is down 1.5%. Australia\u2019s All Ordinaries Index is 0.7% lower with Australian dollar steady gainst the greenback.<\/p>\n

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Brent\u00a0<\/a>falls<\/h2>\n<\/div>\n<\/div>\n

Brent futures prices\u00a0<\/b>are extending losses. Prices fell yesterday after Energy Information Administration weekly report showed US crude production hit a fresh high of 10.283 million barrels a day last week. Brent for May settlement fell 1.4% to close at $63.83 a barrel on Thursday.<\/p>\n

\nMarket Analysis provided by IFCMarkets<\/a><\/p>

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Note:
\nThis overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or \u0430 recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.<\/p>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets S&P 500 logs third straight decline US stock market\u00a0selloff continued on Thursday as President Trump announced his intentions to put tariffs on steel and aluminum imports.\u00a0Dow Jones\u00a0industrial average tumbled 1.7% to 24608.98. The\u00a0S&P 500\u00a0lost 1.3% to 2677.67 led by industrial stocks with all 11 sectors finishing in the red. The\u00a0Nasdaq\u00a0composite fell 1.3% to […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-122455","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/122455","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=122455"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/122455\/revisions"}],"predecessor-version":[{"id":122462,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/122455\/revisions\/122462"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=122455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=122455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=122455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}