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Trump says he could impose more tariffs on China if he wanted
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S&P 500 falls 0.3%, dollar climbs in Tuesday trading
Asian equities looked set to track losses seen in the U.S. session after President Donald Trump said he could impose more tariffs on China. The dollar climbed.
Futures pointed lower for equity indexes in Japan, Hong Kong and Australia. The S&P 500 Index halted a five-day rally, with energy producers joining an oil sell-off and technology giants facing an antitrust showdown with Congress. Benchmark 10-year Treasury yields climbed on solid data, then pared the move after Federal Reserve Chairman Jerome Powell reiterated his dovish tilt. Oil retreated.
The Fed chief told a Paris audience that the central bank is “carefully monitoring” downside risks to U.S. growth and “will act as appropriate to sustain the expansion,” echoing his Congressional testimony. In earnings news, Goldman Sachs Group Inc. jumped on better-than-estimated results in its trading unit, and JPMorgan Chase & Co. rebounded from losses triggered by a disappointing lending outlook.
“Trade’s a big, big issue,” said Dave Campbell, a principal at San Francisco-based BOS, which manages about $4.5 billion. “There’s a lot of uncertainties — all of these are weighing on people’s minds right now.”
Elsewhere, Bitcoin slid below $10,000 just three weeks after surging above it for the first time in more than a year as U.S. legislators expressed deep skepticism about the viability of cryptocurrencies. The euro slipped as investor confidence in Germany’s economic outlook fell. The pound slumped as traders contemplated no-deal Brexit risk after the contenders to be U.K. prime minister toughened their rhetoric.
Here are some key events coming up:
- Bank of America Corp. and Taiwan Semiconductor are among companies due to report results this week.
- Monetary policy decisions are due in Indonesia, South Korea and South Africa on Thursday.
These are the main moves in markets:
Stocks
- The S&P 500 dipped 0.3%.
- Futures on Japan’s Nikkei 225 fell 0.3%.
- Hang Seng futures earlier slid 0.3%.
- Futures on Australia’s S&P/ASX 200 Index dropped 0.2%.
Currencies
- The yen was at 108.23 per dollar.
- The offshore yuan traded at 6.8815 per dollar.
- The Bloomberg Dollar Spot Index increased 0.4%.
- The euro bought $1.1212.
- The British was at $1.2411 after dropping 0.9%.
Bonds
- The yield on 10-year Treasuries gained one basis point to 2.10%.
Commodities
- West Texas Intermediate crude sank 3.5% to $57.48 a barrel.
- Gold was steady at $1,406.20 an ounce.
By Adam Haigh
— With assistance by Rita Nazareth, Vildana Hajric, and Tian Chen
17 July 2019, 07:46 GMT+10
Source: Bloomberg