Tag archive: S&P

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US-China Trade War Sinks AUD, Global Stocks

The rising tension between US and China in trades has sent almost every major asset sinking, including oil, global stocks and Australian dollar.

The Trump administration announced that it will impose a 10 per cent tariff on $US200 billion worth of Chinese goods, including consumer items such as clothing and refrigerators. This decision followed China’s implementation of reciprocal tariffs on $US34 billion in US import goods.

The Dow Jones was down 0.9 per cent to 24,700, while the S&P and Nasdaq closed 0.7 per cent and 0.6 per cent lower respectively.

Chinese stocks declined by 1.6 per cent, while European markets such as Paris, London and Frankfurt lost between 1.3 and 1.5 per cent each. Japan’s Nikkei also dropped by 1.2 per cent, and Hong Kong’s Hang Seng dipped 1.3 per cent.

Gold fell 0.9 per cent to $US1,244.4 per ounce, while brent crude oil was down 6 per cent to $US74.17 per barrel.

Australian dollar plunged 1.2 per cent to 73.65 US cents, and is expected to continue declining. “We remain of the view that trade tensions are likely to get worse before they get better and as such we still see more downside risk for the Australian dollar,” NAB’s senior foreign exchange strategist Rodrigo Catril told the ABC.

Stockmarket: Major US Indexes Close on Record Highs

All three major US stock indexes have closed on record highs on Monday night, following a rise in commodity and technology shares.

S&P energy index jumped 2.2 per cent, while .SPLRCT technology index rose 1.1 per cent.

Facebook increased 4 per cent to $US121.77 after announcing a $6-billion share buyback program on Friday.

LifeLock rose 14.7 per cent to $US23.18 following Symantec’s announcement to purchase the company for $US2.3 billion.

Applied Micro Circuits also increased 11.7 per cent after Macom Tech announced a $US770 million takeover of the company.

Oil prices have risen after Iran and Russia indicated that an OPEC deal could be reached in a Vienna meeting next week.

 

Markets at 8:40am (AEDT):

  • ASX SPI 200 futures +0.7pc to 5,393
  • AUD: 73.65 US cents, 69.31 euro cents, 59.00 British pence, 81.62 Japanese yen, $NZ1.0429
  • US: Dow Jones +0.47pc at 18,957, S&P500 +0.75pc at 2,198, NASDAQ +0.89pc at 5,369
  • Europe: FTSE +0.03pc at 6,778, DAX +0.19pc at 10,685, Eurostoxx +0.29pc at 325
  • Commodities: Brent oil +4.8pc at $US49.11/barrel, spot gold +0.41pc at $US1,213.20/ounce, iron ore -$US2.00 at $US70.50/tonne