Trade war slams stock markets again

The latest flare up in global trade tensions is taking a toll on stock markets.The Shanghai Composite...

Posted: Aug 2, 2018 1:12 PM
Updated: Aug 2, 2018 1:12 PM

The latest flare up in global trade tensions is taking a toll on stock markets.

The Shanghai Composite index fell 2% on Thursday as investors reacted to the latest threat by the United States to hike tariffs on Chinese exports.

The Trump administration confirmed it was considering increasing the rate of proposed tariffs from 10% to 25% on goods from China worth $200 billion.

Other global markets felt the heat. Hong Kong's Hang Seng fell 2.2% and Japan's Nikkei dropped 1%. Germany's DAX declined nearly 2% and France's CAC 40 shed 0.9%.

US stock futures were also down.

"The trade war is the big driving factor," said Hao Hong, head of research at broker BOCOM International. "With much still evolving, it's difficult to price in the uncertainties."

Related: The US-China trade war is about to get real

The United States has already slapped 25% tariffs on Chinese goods worth $34 billion to punish Beijing for what it says are its unfair trade practices. China immediately responded with equal measures.

"Markets are now wary of the next step in the trade war between the United States and China," said Nick Twidale, chief operating officer of broker Rakuten Securities Australia. Any further moves could tip sentiment and send "some markets into a tailspin," he added.

Export-focused technology and industrial companies — which are among those considered most exposed to trade tensions — were some of the worst hit stocks in Shanghai trading Thursday.

China has been one of the world's worst performing major stock markets this year. Chinese shares have slumped more than 20% since their late January peak.

Related: Do trade wars hurt business? Ask Qualcomm

Investors are becoming increasingly concerned about how the slowing Chinese economy will fare in a major trade spat with the United States.

Data released earlier this week suggested that the Chinese economy is already starting to feel pain from US tariffs introduced over the last few weeks. China's July purchasing managers index, which measures the health of the manufacturing sector, suggested the country's huge export industry is cooling.

Iris Pang, an economist at investment bank ING, said the weaker data pointed "to concerns about the trade war impact on businesses."

The United States is expected to slap tariffs of 25% on another $16 billion of exports from China in the coming days. "Then it will only get worse for [Chinese] exporters and related businesses," Pang added.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 319704

Reported Deaths: 7369
CountyCasesDeaths
DeSoto22276267
Hinds20677421
Harrison18407317
Rankin13880282
Jackson13689248
Madison10249224
Lee10056176
Jones8464167
Forrest7827153
Lauderdale7260242
Lowndes6509150
Lamar634888
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Washington5420137
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Panola4669110
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Warren4440121
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Union415777
Monroe4155135
Neshoba4061179
Lincoln4008112
Hancock386687
Leflore3515125
Tate342486
Sunflower339491
Pike3369111
Alcorn325972
Scott320174
Yazoo314171
Adams307486
Itawamba305178
Copiah299966
Coahoma298784
Simpson298189
Tippah291968
Prentiss283861
Leake271974
Marion271280
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George252051
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Holmes190374
Clay187854
Stone187833
Tallahatchie180041
Clarke178980
Calhoun174132
Yalobusha167840
Smith164034
Walthall135347
Greene131833
Lawrence131024
Montgomery128643
Noxubee128034
Perry127138
Amite126342
Carroll122330
Webster115032
Jefferson Davis108033
Tunica108027
Claiborne103130
Benton102325
Humphreys97533
Kemper96629
Franklin85023
Quitman82216
Choctaw79118
Wilkinson69532
Jefferson66228
Sharkey50917
Issaquena1696
Unassigned00

Alabama Coronavirus Cases

Cases: 548323

Reported Deaths: 11288
CountyCasesDeaths
Jefferson809531565
Mobile42066826
Madison35663525
Tuscaloosa26162458
Shelby25595254
Montgomery25081612
Baldwin21839313
Lee16265176
Calhoun14718325
Morgan14626285
Etowah14171363
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Houston10764288
Elmore10295213
Limestone10182157
St. Clair10160251
Cullman9941201
Lauderdale9596249
DeKalb8967189
Talladega8458184
Walker7335280
Autauga7230113
Blount6944139
Jackson6922113
Colbert6414140
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Dale4929114
Russell454941
Chilton4472116
Franklin431083
Covington4273122
Tallapoosa4136155
Escambia401780
Chambers3726124
Dallas3607156
Clarke352961
Marion3242106
Pike314078
Lawrence3129100
Winston283572
Bibb268464
Geneva257581
Marengo250665
Pickens236862
Barbour234659
Hale226878
Butler224071
Fayette218162
Henry193843
Cherokee187245
Randolph187044
Monroe179341
Washington170439
Macon162951
Clay160159
Crenshaw155657
Cleburne153244
Lamar146537
Lowndes142054
Wilcox127030
Bullock124242
Conecuh113430
Coosa111429
Perry108626
Sumter105732
Greene93534
Choctaw62025
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