US-China trade war sinks Australian dollar

Related Story: China Trumped again with tariffs slapped on imports worth $US200 billion Related Story: A trade war will be hard to avert and Australia needs to prepare for the worst

With US-China trade tensions continuing to rise, almost every major asset has tumbled — including the Australian dollar, gold, oil, base metals and global stocks.

Markets at 7:05am (AEST):ASX SPI 200 futures -0.1pc to 6,170, ASX 200 (Wednesday’s close) -0.7pc at 6,216AUD: 73.65 US cents, 55.76 British pence, 63.07 Euro cents, 82.51 Japanese yen, $NZ1.09US: Dow Jones -0.9pc at 24,700, S&P 500 -0.7pc at 2,774, Nasdaq -0.6pc at 7,717Europe: FTSE -1.3pc at 7,592, DAX -1.5pc at 12,417, CAC -1.5pc to 5,354, Euro Stoxx 50 -1.3pc at 3,427Commodities: Brent crude -6pc at $US74.17/barrel, spot gold -1.1pc at $US1,241.76/ounce, iron ore flat at $US63.91/tonne

The United States was the catalyst, after confirming on Wednesday it would impose tariffs on a further $US200 billion ($271 billion) worth of China’s imports.

The Dow Jones tumbled 219 points, or 0.9 per cent, to 24,700. The S&P 500 closed 0.7 per cent lower, while the Nasdaq is down 0.6 per cent.

Industrial names including Boeing, 3M and Caterpillar — which have been some of those hardest hit by the recent trade dispute — were among the Dow’s biggest drags.

The US markets’ drop was not as steep as what was seen in late March and early April when the escalating trade rhetoric between China and the United States led to the S&P falling more than 2 per cent on four occasions.

The market slide may have been contained in part by speculation that the Trump administration could change its mind by the end of August, when the tariffs are due to

Read More Here...

Bookmark the permalink.