U.S. futures extend Wall Street selloff as Trump quashes hopes of quick U.S.-China deal European shares waver on reports of E.U. retaliation against U.S. tariffs threat U.S. Treasury yields reverse steeply after Trump remarks spur risk off Key Events
Futures on the , and extended Monday’s widespread selloff this morning, as the global trade dispute reached new heights.
U.S. President Donald Trump said a trade deal with China to after the November 2020 presidential elections, dashing hopes that an agreement between the world’s two largest economies could be reached any time soon.
On another front, the French government said the E.U. stood to any further U.S. tariff threat, after Trump yesterday announced higher tariffs on Argentinian and Brazilian steel and similar plans aimed at Europe and Turkey—spurring extensive losses that saw the suffer its biggest drop in nearly eight weeks.
Adding to the downward market pressure, China announced a new trade threat of its own, with Chinese state media saying the government is putting together a blacklist of U.S. companies that may be subject to sanctions.
In Europe, losses in miners’ stocks offset gains in tech and chemicals shares, trimming an earlier climb on the , which was likely driven by a buying dip after the benchmark posted its worst selloff in about two months on Monday.
In the earlier Asian session, all major indices edged lower. Australia’s (-2.19%) underperformed in its worst session in two months. The country is dependent upon China as its biggest trade partner—and ING economist Timme Spakman pointed out that Trump’s latest tariffs move may impact China’s willingness to negotiate over trade, “knowing that a deal could very well be short-lived.”
Ironically, however, China’s (+0.31%) outperformed the region. The contrasting reaction of the two indices may be explained by two reasons— fundamental and political. China