· Stocks fell sharply on Thursday, erasing a big surge from earlier in the day, after President Donald Trump said the U.S. would impose an additional 10% tariff on Chinese imports to the U.S.
The Dow Jones Industrial Average closed 280.85 points lower at 26,583.42 after rallying as much as 311 points earlier in the day. The S&P 500 ended the session down 0.9% at 2,953.56 after rallying more than1%. The Nasdaq Composite closed down 0.8% at 8,111.12 after jumping more than 1.6%.
Trump said in a series of tweets the tariff will be imposed on $300 billion worth of Chinese goods. The levy will take effect Sept. 1.
· The Cboe Volatility Index (VIX), considered the best fear gauge in the market, surged 8.7% higher at 17.57.
· Investors will end the week Friday poring through the July jobs report. Economists polled by Dow Jones expect the U.S. economy to have added 165,000 jobs last month.
· European stocks traded higher Thursday after strong earnings reversed early losses resulting from a more hawkish tone from the U.S. Federal Reserve.
The pan-European Stoxx 600 closed provisionally 0.41% higher, led by a 2.2% gain for financial services stocks. Basic resources plummeted 3.2% on the back of a steep loss for Tenaris after the Luxembourg-based steel company missed second-quarter earnings expectations.
· In the U.K., the Bank of England’s Monetary Policy Committee voted unanimously to hold interest rates steady at 0.75% and cut its growth forecast in the face of increased Brexit worries and a slowing global economy.
The BOE gave no indication that it was considering lowering interest rates. Its forecasts assume Britain avoids a sudden Brexit shock, but the central bank lowered its growth forecast to 1.3% for 2019 and 2020, down from 1.5% and 1.6% respectively.
The pound slipped a further 0.5% against the dollar, continuing its steep decline to hover just above the $1.21 mark, having dropped below it earlier in the session. The currency held steady following the BOE announcement.
· Asia stocks traded lower Friday morning after a surprise tariff announcement from the United States escalated trade tensions between Washington and Beijing.
The Nikkei 225 in Japan plunged 1.86% in early trade as shares of index heavyweight and robot maker Fanuc plummeted more than 3%. The Topix index also fell 1.62%.
In South Korea, the Kospi declined 1.23%, with shares of industry heavyweight Samsung Electronics shedding 1.22% and SK Hynix dropping 2.32%.
Australia’s S&P/ASX 200 slipped 0.46% as the energy subindex fell more than 2%.
The MSCI Asia ex-Japan index declined 0.51%.
Reference: CNBC
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