Egypt and Italy mark 50 years of science partnership, discuss future cooperation    Egypt's Contact insurance arms, Germany's GIZ partner on SMEs, gender equity    Government stresses continued payment of foreign oil partners' dues    Sri Lanka's expat remittances up in June '25    CBE's Abdalla attends Arab central bank governors' meeting ahead of Sept summit    Egypt's gold prices grow on July 13th    Egypt's Health Min. discusses drug localisation with Sandoz    Al-Sisi attends high-level African summit to strengthen continental coordination, regional integration    Egypt, Mexico discuss environmental cooperation, combating desertification    Egypt launches anti-drug awareness campaign for drivers    Germany faces recruitment hurdles in push to rearm, eyes conscription    Lavrov warns against anti-Russia alliances in Asia during North Korea visit    Needle-spiking attacks in France prompt government warning, public fear    Foreign, housing ministers discuss Egypt's role in African development push    Egypt's EDA, Haleon discuss local market support    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, France FMs review Gaza ceasefire efforts, reconstruction    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Greco-Roman tombs with hieroglyphic inscriptions discovered in Aswan    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Egypt condemns deadly terrorist attack in Niger        Sisi launches new support initiative for families of war, terrorism victims    Egypt's GAH, Spain's Konecta discuss digital health partnership    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Dow falls over 300 points as investors brace for further Trump trade actions against China
Published in Amwal Al Ghad on 26 - 06 - 2018

U.S. stocks kicked off the week on a sour note Monday as Wall Street braced for more actions against Chinese companies by the Trump administration. The Dow Jones Industrial Average dropped 328.09 points to close at 24,252.80, with Boeing and Intel among the biggest decliners in the index.
The 30-stock index also closed below its 200-day moving average, a key technical level, for the first time since June 2016.
The Dow rebounded slightly in the final hour of trading after Peter Navarro, a top trade adviser to President Donald Trump, said on CNBC that investment restrictions against China and other countries are not immediately forthcoming and that the market was overreacting.
"He basically said ‘hey guys, it's Trump playing the ‘Art of the Deal' with China," said Scott Redler of T3Live.com.
The S&P 500 fell 1.4 percent to 2,717.07, posting its worst day since April 6, when it fell 2.19 percent, as tech declined 2.3 percent. Five of the 11 S&P 500 sectors also closed in correction, or down at least 10 percent from their 52-week high. The Nasdaq composite pulled back 2.1 percent to close at 7,532.01 as Netflix dropped 6.5 percent to lead the FANGs lower.
Harley-Davidson shares fell about 6 percent after the company announced it will shift production of motorcycles headed for Europe to factories outside the U.S. The company sold nearly 40,000 bikes to the European Union, second only to the U.S.
"This is a case where you have widespread optimism and that leaves little room for error," said Willie Delwiche, investment strategist at Baird. "It leads to a scenario where you sell first and ask questions later."
The Wall Street Journal reported Sunday that Trump plans to bar several Chinese companies from making investments in U.S. tech. The newspaper also reported that the administration wants to block additional technology exports to China. Both measures are expected to be announced by the end of the week.
Treasury Secretary Steven Mnuchin called the Journal's story "fake news" in a tweet. He also said, however, that the measure will impact not just China, but all countries.
Increasing trade tensions between the U.S. and its key trade partners, including China, have kept Wall Street on edge. The major indexes finished last week lower after Trump asked the U.S. trade representative to target $200 billion worth of Chinese products for tariffs. Trump also raised the possibility of slapping a 20 percent charge on European cars.
Peter Boockvar, chief investment officer at Bleakley Advisory Group, said in a note there are three goals the administration wants to complete with these tariffs: to protect tech companies from Chinese theft, to lower trade barriers set by other countries relative to the U.S. and lower the trade deficit.
"As for the first concern, we don't seem to have made any progress addressing with the current tariff plan but are at least calling China out deservingly so. The 2nd one might be gaining some traction in bits and pieces and hopefully continues. The 3rd is only a symptom of everything else," he said. "Either way, and regardless of how one thinks this should all be handled, the means to the intended end is immediately having negative real world impacts."
Shares of chipmakers Intel, Micron Technology and Nvidia all fell at least 3.4 percent.
Boeing, Caterpillar and General Motors, all major exporters with significant exposure to China, also fell by 2.3 percent, 2.4 percent and 1.6 percent, respectively. Boeing, Caterpillar and GM were also on track to post large monthly losses, having fallen 5.9 percent, 10.1 percent and 4.9 percent in June, respectively. Deere and U.S. Steel, major exporters as well, are also down more than 6 percent each.
The CBOE Volatility Index (VIX), regarded as the best gauge of fear in the market, traded above 17, rising more than 25 percent.
Overseas markets fell broadly. In Europe, the Stoxx 600 index dropped 2 percent while the German Dax fell 2.5 percent. Treasury yields slipped as investors bought bonds amid the trade tensions. The benchmark 10-year yield fell to 2.882 percent while the two-year yield slipped to 2.545 percent.
Source: CNBC


Clic here to read the story from its source.