Dow Jones falls 245 due to new China tariff fears
- Author: Eleanor Harrison Nov 02, 2018,
Nov 02, 2018, 1:29
They've been taken out an average of USD500 billion a year for many years. The euro fell to $1.1390 from $1.1412.Tokyo's Nikkei 225 sank 0.2 percent and Seoul's Kospi lost 1.5 percent. Wall Street was poised for an optimistic open.
The S&P 500 index fell 17.44 points, or 0.7 percent, to 2,641.25.
EUROPEAN GROWTH: The eurozone economy expanded by only 0.2 percent in the July-September period - half the previous quarter's rate and below expectations for another reading of 0.4 percent. US government notes extended a drop as the Treasury Department said it will raise the amount of long-term debt it sells this quarter.
"This is a continuation of the recovery we saw yesterday", said Hugh Johnson, chief investment officer with Hugh Johnson Advisors in Albany, New York.
The Nasdaq composite, which is heavily weighted with technology stocks, lost 116.92 points, or 1.6 percent, to 7,050.29.
The S&P 500 fell as much as 11 percent from its all-time high before paring the drop in the final 15 minutes of trading. Hong Kong's Hang Seng advanced 0.4 percent. Shares were higher in Taiwan, Indonesia and Thailand but fell in Singapore.
Trump has long threatened to impose tariffs on all remaining Chinese imports into the United States, which exceed Dollars 257 billion, if Beijing fails to meet U.S. demands for sweeping changes to Chinese trade, technology transfer and industrial subsidy policies.
The two leaders are set to meet on the sidelines of the G20 summit meeting in Buenos Aires, Argentina, at the end of next month, with the United States demanding that China present a list of actions it is prepared to carry out to meet its demands.
According to the report, no decisions had been made but preparations for a new list of US tariffs were being made in case the Trump-Xi meeting does not yield progress in resolving the US-China disputes. A weakening of the Chinese yuan, which can make exports more price competitive, lifted sentiment in Asia. It recovered to 6.9599 per dollar later in the day.
The move indicates the Trump administration remains willing to escalate its trade war with China even as companies complain about the rising costs of tariffs and financial markets continue to be nervous about the global economic fallout. China has retaliated with its own tariffs on USA products.
ENERGY: Benchmark U.S. crude shed 71 cents to $66.33 per barrel in electronic trading on the New York Mercantile Exchange.
Brent crude futures fell $1.34 to $76.00 a barrel, a 1.7-per-cent drop. Brent crude, used to price worldwide oils, lost $1.14 to $76.20 per barrel.