🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

GLOBAL MARKETS-Stocks slip, yen rises as U.S. raises stakes in trade conflict

Published 2018-07-10, 08:53 p/m
© Reuters.  GLOBAL MARKETS-Stocks slip, yen rises as U.S. raises stakes in trade conflict
USD/JPY
-
AUD/USD
-
US500
-
JP225
-
JPM
-
LCO
-
ESZ24
-
1YMZ24
-
US10YT=X
-
KS11
-
MIAPJ0000PUS
-

* MSCI Asia-Pacific index down 0.4 pct, Nikkei sheds 1.2 pct

* Risk appetite hit as US warns of more tariffs on Chinese goods

* News seen reviving trade woes, safe-havens gain broadly

By Shinichi Saoshiro

TOKYO, July 11 (Reuters) - Asian stocks retreated and perceived safe havens such as the yen and U.S. Treasuries rose on Wednesday after the United States said it would impose tariffs on an extra 200 billion worth of Chinese imports, sharply escalating the trade war between the world's two biggest economies.

Washington decided to impose the extra tariffs after efforts to negotiate a solution to the dispute failed to reach an agreement, senior administration officials said on Tuesday. United States had just imposed tariffs on $34 billion worth of Chinese goods on Friday, drawing immediate retaliatory duties from Beijing on U.S. imports in the first shots of a heated trade war. U.S. President Donald Trump had warned then that his country may ultimately impose tariffs on more than $500 billion worth of Chinese imports.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.4 percent. The index had gained for the past two sessions, having enjoyed a lull from the trade war fears that lashed global markets last week.

South Korea's KOSPI .KS11 lost 1 percent and Japan's Nikkei fell 1.2 percent .N225 .

S&P 500 and Dow futures were down 0.8 percent ESc1 and 0.95 percent YMc1 , respectively, pointing to a lower open for Wall Street later in the day.

"The markets still remain sensitive to the trade-related theme, which is something investors have to take into account for the long term," said Yoshinori Shigemi, global market strategist at JPMorgan (NYSE:JPM) Asset Management in Tokyo.

"At the same time, the trade dispute can easily be blamed for a variety of ills. But it could mask over factors that could also weigh on equities in the longer run, such as tighter monetary policies led by the United States."

The yen, often sought in times of political tensions and market turmoil, gained against a number of peers.

The dollar was down 0.1 percent at 110.88 yen JPY= , pulled back from a near two-month peak of 111.355.

The euro fell 0.25 percent to 130.11 yen EURJPY= and the Australian dollar lost 0.7 percent to 82.24 yen AUDJPY= .

The Aussie, considered a liquid proxy for China-related trades, fell 0.5 percent against the dollar to $0.7422 AUD=D4 .

The 10-year Treasury note yield US10YT=RR fell roughly 4 basis points to 2.8345 percent, pulling back from the previous day's peak of 2.875 percent.

Brent crude futures LCOc1 lost 0.57 percent to $78.41 a barrel. Oil had risen the previous day, supported by a larger-than expected U.S. stock draw and supply concerns in Norway and Libya. O/R

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ MSCI, Nikkei datastream chart

http://reut.rs/2sSBRiD

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.