Global shares, oil slump after Trump vows China tariff hike

Asian shares tumbled on Monday after U.S. President Donald Trump unexpectedly jacked up pressure on China to reach a trade deal in the midst of negotiations, saying he would hike U.S. tariffs on Chinese goods this week.

Asian shares

  • MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.9 percent.
  • Chinese blue-chips lost more than 6 percent at one point in the morning session.
  • Australian shares were off 0.9 percent.
  • Japanese financial markets remain closed until Tuesday for a national holiday, but Nikkei 225 futures were down 2.3 percent at 21,965.
  • E-Mini futures for the S&P 500 slid 1.9 percent.

Currency

  •  China’s yuan plunged, with the offshore unit weakening to 6.8215 per dollar.
  • The onshore yuan weakened nearly 1 percent to 6.7980 per dollar before bouncing back to 6.7880.
  • The euro was down 0.13 percent on the day at $1.1186.
  • The dollar index, which tracks the greenback against a basket of six major rivals, was barely higher at 97.538.

Commodities

In commodity markets, Trump’s tweets sparked a plunge in oil prices.

  • U.S. crude dropped 2.2 percent to $60.58 a barrel.
  • Brent crude fell 2 percent to $69.45 per barrel.
  • Spot gold jumped 0.3 percent to trade at $1,282.80 per ounce.

Bonds

Chinese 10-year treasury futures also jumped, with the most-traded contract, for June delivery rising as much as 0.5 percent. They were last up about 0.3 percent at 96.850.

Comments are closed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy