Global markets extend losses on China-US trade jitters
By ELAINE KURTENBACH
Aug. 02, 2018
BANGKOK (AP) — World shares slipped Thursday, tracking losses overnight on Wall Street, where investors sold industrial stocks following reports that the Trump administration is considering a higher tax rate on Chinese imports.
KEEPING SCORE: Germany's DAX fell 1 percent to 12,604.39 and the CAC 40 in France lost 0.3 percent to 5,483.38. Britain's FTSE 100 slid 0.6 percent to 7,604.58. The outlook for Wall Street was downbeat, with the Dow future contract down 0.3 percent to 25,208.00 and S&P 500 contract also losing 0.3 percent, to 2,802.70.
ASIA'S DAY: Japan's Nikkei 225 index sank 1.0 percent to 22,512.53 while the Shanghai Composite index lost 2.0 percent to 2,768.02. Hong Kong's Hang Seng index dropped 2.2 percent to 27,714.38 and the Kospi in South Korea shed 1.6 percent to 2,270.20. Australia's S&P ASX 200 skidded 0.6 percent to 6,240.90. Shares also fell in Southeast Asia and Taiwan.
APPLE RECORD: Already the most valuable company in the U.S., Apple was the biggest gainer of any S&P 500 stock Wednesday, surging 5.9 percent to $201.50. That gave the company a value of $973 billion, based on its latest quarterly filing. The tech giant said the average selling price for the iPhone jumped 20 percent in its latest quarter and its third-quarter profit and sales both surpassed analyst projections. Apple's third fiscal quarter is usually its weakest.
ANALYST'S VIEWPOINT: "U.S. futures are trading lower as investors weighing the new threats from Donald Trump," Naeem Aslam of thinkmarkets said in a commentary, adding that "the trade tensions are making investors risk-averse today while investors digest the Fed's interest rate decision."
FED TALK: As expected, the Federal Reserve left interest rates unchanged, but hinted it's likely to raise rates again in September. High-dividend stocks like consumer products makers sank as bond yields increased. The central bank noted the labor market continues to improve and the economy is growing at a strong clip, while inflation has reached its target of 2 percent a year.
ENERGY: Benchmark U.S. crude lost 1 cent at $67.65 per barrel in electronic trading on the New York Mercantile Exchange. It dropped 2 percent to $67.66 per barrel in New York. Brent crude, used to price international oils, gained 9 cents to $72.48 per barrel in London.
CURRENCY: The dollar fell to 111.62 yen from 111.72 yen. The euro slipped to $1.1624 from $1.1659.