Global Market Overview: Trump shakes the markets, oil edges up on strong China data
By Content-mgr - on March 14, 2018Trump made markets slip again. With Tillerson decision, and turmoils among his advisors who quit amid trade wars concerns US President sends strong uncertainty signals to markets, and not only within US. Asia equities down and Europe called lower amid US political uncertainty, US Treasuries yields fall as stocks stutter. Only oil prices are making good headlines, mainly due to China’s positive data outlook. Oil prices edge down after rocky trading on Tuesday.
Overnight on Wall Street the S&P 500 closed down 0.6% as the tech-focused Nasdaq dropped 1% after Mr Trump blocked Singapore-based Broadcom’s proposed $142bn takeover of Qualcomm on national interest grounds.
The combination of moves by Trump left investors scurrying for safety as global equities took a knock, the dollar fell and bonds rose.
MSCI’s broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) stumbled 0.7 percent, retreating from a 1-1/2 month high hit on Tuesday, with technology sector the biggest drag.
Japan’s Nikkei (N225) dropped 1 percent and South Korea’s Kospi index (KS11) declined 0.6 percent. China’s SSE (LON:SSE) Composite index (SSEC) and the blue-chip CSI 300 (CSI300) slipped 0.3 percent each.
The weakness followed overnight losses on Wall Street, with the Dow (DJI) off 0.7 percent, the S&P 500 (SPX) down 0.6 percent and the Nasdaq Composite (IXIC) falling 1.0 percent.
Separately, Trump is looking to impose tariffs on up to $60 billion of Chinese imports, targeted at information technology, consumer electronics and telecoms.
Oil prices edged up earlier on Wednesday after posting two days of declines at the start of the week.
Support also came from China, where January-February domestic crude oil production fell 1.9 percent on the year to 30.37 million tonnes, equivalent to 3.77 million barrels per day (bpd), according to data from the National Statistical Bureau on Wednesday. At the same time, crude oil throughput rose 7.3 percent to 93.4 million tonnes, implying a need for more imports.
China’s industrial output grew 7.2 percent in the first two months of the year compared with the same period last year, beating expectations of a 6.1 percent hike.
Sources:
https://www.investing.com/news/
https://www.ft.com/content/8fa467aa-2721-11e8-b27e-cc62a39d57a0
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