Investing.com - Here are the top five things you need to know in financial markets on Monday, June 18:
1. U.S.-China Trade Worries Take Center Stage
Escalating trade rhetoric will keep investors on their toes after both the United States and China announced tariffs last week, raising tensions between the world's two largest economies.
The Trump administration said on Friday it will impose a 25% tariff on a list of 818 items of Chinese goods worth around $34 billion beginning July 6. Measures affecting an additional 284 products worth $16 billion will be subject to review before taking effect.
In response, China said a 25% tariff will be implemented on U.S. goods, including soybeans, oil and electric vehicles, worth $34 billion starting July 6. Another list of U.S. imports worth $16 billion will be subject to review before being applied.
Washington and Beijing appeared increasingly headed toward open trade conflict after several rounds of negotiations failed to resolve U.S. complaints over Chinese industrial policies, lack of market access in China and a $375 billion U.S. trade deficit.
2. Dow Futures Fall More Than 100 Points
U.S. stock futures pointed to heavy losses at the open, as worries over a trade war between the United States and China kept investors on the edge.
At 5:45AM ET (1045GMT), the blue-chip Dow futures were down 145 points, or around 0.6%, on track for a fifth losing session in a row.
The S&P 500 futures and Nasdaq 100 futures also indicated similar losses at the open for their respective markets.
There are no major earnings or economic data scheduled for today.
Elsewhere, in Europe, the majority of the continent's bourses were lower in mid-morning trade, with most sectors in the red.
Earlier, Asian markets largely closed with losses, though Chinese markets were shut for a holiday.
3. Dollar Stays Near 11-Month Peak
The dollar held near 11-month highs against a currency basket, supported by the diverging monetary policy outlook between the U.S. and Europe, although worries over a brewing trade conflict between the U.S. and China slowed its gains.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was a shade higher at 94.50, remaining within sight of Friday’s 11-month high of 95.13.
The greenback enjoyed its best weekly performance in seven weeks last week after a hawkish Federal Reserve pointed to a faster pace of monetary tightening this year while the European Central Bank gave a dovish signal.
In the bond market, the U.S. 10-year Treasury yield stood at around 2.91%.
4. OPEC Said To Discuss Smaller Output Hike Than Expected
Oil markets weighed potential outcomes for a meeting of major oil producers in Vienna later this week.
The latest headlines said that the Organization of the Petroleum Exporting Countries’ (OPEC) along with Russia will discuss an oil output hike of 300,000 to 600,000 barrels per day (bpd), as it seeks a compromise to overcome Iranian dissent.
Last month, it was reported that the OPEC and Russia were aiming to boost output by 1 million bpd at the June meeting.
Oil prices turned higher in the wake of the above headlines. Brent crude, the global benchmark, was up 62 cents, or 0.8%, to $74.05 a barrel, after hitting a session low of $72.46, its lowest level since May 2.
Elsewhere, U.S. West Texas Intermediate crude dipped 29 cents, or 0.5%, to $64.56, bouncing back from an intraday low of $63.41, a level last seen on April 10.
5. ECB's Central Banking Forum Kicks Off In Portugal
The fifth annual European Central Bank (ECB) "Forum on Central Banking" is scheduled to take place in Sintra, Portugal from Monday to Wednesday.
It will focus on price and wage-setting in advanced economies.
During three days of sessions and panels, approximately 150 central bank governors, academics, financial journalists and high-level financial market representatives will exchange views on current policy issues and discuss the chosen topic from a longer-term perspective.
The highlight of the summit is likely to be Wednesday's panel discussion including ECB President Mario Draghi, Federal Reserve Chair Jerome Powell and Bank of Japan (BoJ) Governor Haruhiko Kuroda.