Home » Money

Stocks fall as China puts tariffs on US goods

05 April, 2018, 02:02 | Author: Shawna Walton
  • Sight for Sore Eyes       The start of April may be a welcomed change for Asian investors after a rocky March              Source Bloomberg

China announced before markets opened Monday that it would impose a 15 percent tariff on more than 120 goods imported from the US, including pork, fruit and nuts.

The Dow Jones industrial average shed 458 points, or 1.9 percent, while the S&P 500 dropped 2.2 percent to head back into correction turf, down 10 percent from its record high on January 26. The Dow Jones industrial average rose 1.6 percent to 24,033.36.

USA stocks rose on Tuesday as technology shares recovered from a sharp selloff a day earlier, helping the S&P 500 and the Dow stay above an important technical level.

Gains in Tokyo stocks came despite a Bank of Japan survey showing the first softening of business sentiment among Japan's big manufacturers in two years, with the materials sector most directly affected by USA trade tariffs showing the sharpest declines.

The Nasdaq composite gained 71.16 points, or 1 percent, to 6,941.28. Losses were widespread across all 12 sectors of the market, with consumer goods (2.8 percent), technology (2.4 percent) and financials (2.1 percent) taking the hardest hits. Stocks across the world have been far more volatile in 2018 than in 2017, when USA markets saw a major boost in value during Trump's first year. Starting Monday, China is increasing the tariff rate on eight imported USA products, including pork, by 25 percent.

We've been warning since early this year that stocks were getting ahead of themselves.

With many global markets closed for Easter, trading volume was fairly light in the morning but picked up in the afternoon as investors began unloading their holdings, said JJ Kinahan, chief markets strategist for TD Ameritrade.

The Dow is down 69.75 points, or 0.3 percent.

That deflated some previously high-fliers including Amazon, Microsoft and Facebook.

Big-name tech companies like Microsoft fell more than the rest of the market Monday.

Energy companies skidded as benchmark USA crude lost $1.93, or 3 percent, to $63.01 a barrel in NY.

Stocks slipped into the red for a brief period after President Donald Trump's latest attack on Amazon but then quickly recovered.

Home builder Lennar and motor vehicle retailer CarMax were among the best performers in the S&P 500 after reporting earnings.

However, lingering concerns about a potential trade war between the United States and China helped to keep buying interest somewhat subdued.

In the cash market, the benchmark S&P 500 Index settled at 2640.87, up 2.0%. Stocks are coming under pressure from worries over an escalating tariff fight with China and the persistent declines in the tech sector, which has been a key performance leader in the bull market and is widely owned by both big and small investors.

US crude fell $1.81 to $63.13 per barrel and Brent was last at $67.88, down $1.46 on the day. The yield on ten-year US Treasury bonds also jumped 2 basis points to 2.75%. CBS rose 2.5 percent.



Social media tributes pour in for Winnie Mandela
He noted the tremendous impact both Winnie and her late former husband, Nelson Mandela had on him and throughout the world. Her death was first announced by the family in Soweto , where she still maintained her home till her dying day.

International Olympic Committee: Seven cities interested in hosting 2026 Winter Olympics
From there, cities will put together their best bids for presentation at the IOC Session in Milan in September of 2019. The deadline for joining the dialogue stage was March 31.

Markram shines as scandal-hit Australia toil in fourth test
Batsmen Peter Handscomb, Matthew Renshaw and Joe Burns were returning to the team as a result of the scandal. At drinks, South Africa were 35/0 at drinks.

Cynthia Nixon supports legalization of marijuana: 'Let's capture some of that revenue'
Andrew Cuomo for hammering out the state budget with three other men - excluding the Senate Democratic leader, a black woman. When the subject on the show turned to the legalization of marijuana, Nixon said she was "absolutely" for it.

Israeli gunfire injures 11 Palestinians on Gaza border
Turkish President Recep Tayyip Erdogan said on Sunday Israeli Prime Minister Benjamin Netanyahu is a "terrorist and occupier". One day after the Israeli army killed 16 Palestinian peace protesters , Meidan tweeted: "Today, I am ashamed to be Israeli".

Countdown to China's space station's fiery return to Earth
Mr McDowell has also pointed out that if part of the space station lands in your garden "it's not yours, it's still China's". The predictions for when Chinese space station Tiangong-1 will come crashing back to Earth are becoming more and more exact.

OnePlus 6 release secrets spun in pink dust
But the fact that OnePlus is already talking about the handset, whose name is yet to be confirmed , is quite telling. This device's display was tipped to roll with a Qualcomm Snapdragon 845 processor and an Adreno 630 GPU.

Download Fortnite For iOS: Available To Everyone Without Invite Code
You will need to have at least an iPhone 6S/SE, or alternatively an iPad Mini 4, iPad Pro, iPad Air 2 or iPad 2017 device. Everyone is invited, so long as the dance is original and fits "the playful personality of Fortnite ".

UFC Notebook: 'Freak injury' forces Ferguson out of UFC 223
Nurmagomedov questioned Max Holloway's reasoning and he believes that he is only taking this fight for the paycheque. On a plane tonight and with just 6 days notice, Holloway's manager, Brian Butler-Au, says, "Hawaii should be proud".

China Imposes US Food Tariffs, Leaving Farmers Worried About Trade War
Weibo prominently featured the list of USA goods that China is targeting among the day's "hot" trending topics. Listed China 50 index stood at 3,083.48, marking a 0.24-percent decrease for the year-to-date returns.