· Stocks fell on Tuesday after President Donald Trump renewed his attacks on China, decreasing hope the two largest world economies will reach a trade deal. Investors also braced for a key announcement on U.S. monetary policy.
The Dow Jones Industrial Average closed 23.33 points lower, or 0.1% at 27,198.02 after dropping as much as 151.49 points. The S&P 500 slipped 0.3% to 3,013.18. The Nasdaq Composite dipped 0.2% to8,273.61.
· Trump said in a series of tweets Tuesday that China is not keeping its promise of buying more U.S. agricultural products. “China is doing very badly,” he wrote. “Worst year in 27 - was supposed to start buying our agricultural product now - no signs that they are doing so. That is the problem with China, they just don’t come through.”
However, China insists it has bought U.S. agricultural products. A U.S. trade delegation flew to China on Monday for negotiations with Chinese officials.
· European stocks closed sharply lower on Tuesday as investors digested earnings and renewed U.S.-China trade uncertainty. Market players also positioned themselves ahead to key interest rate decision from the U.S. Federal Reserve.
The pan-European Stoxx 600 closed provisionally off by 1.45%. Autos and banks led the losses, both off more than 2%, as all sectors and major bourses traded firmly in the red. Germany’s DAX was among the worst-performing bourses after a series of weak earnings from German corporate giants, trading over 2% lower.
· Stocks in Asia traded lower Wednesday morning amid dampened expectations for a resolution to the U.S.-China trade war. Meanwhile, investors await the U.S. Federal Reserve’s announcement of its decision on interest rates, set to happen later on Wednesday stateside.
The Nikkei 225 in Japan slipped 0.73% in early trade, with shares of index heavyweight Fast Retailing declining 1.5%. The Topix index also fell 0.61%.
South Korea’s Kospi traded fractionally lower, with shares of industry heavyweight Samsung Electronics shed 0.21% after the company reported a 56% plunge in its second-quarter profit as compared to a year ago.
Over in Australia, the S&P/ASX 200 slipped 0.23% as the sectors traded mixed.
China is set to release its official manufacturing Purchasing Managers’ Index for July at 9:00 a.m. HK/SIN.
Australian inflation data for the month of June is also set to be released later on Wednesday at 9:30 a.m. HK/SIN.
Reference: CNBC
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