Futures Fall, New Tariffs Take Effect, Focus Shifts To Central Banks

Global markets fall on intensifying trade war fears and another round of tariffs.
Thomas Hughes

The U.S. Futures Move Lower As Trade War Fears Escalate

The U.S. futures are lower in early Tuesday trading following an escalation of tariffs last weekend. U.S. tariffs on Chinese goods were increased on Sunday while those on U.S. goods going into China increased yesterday. Both sides indicate talks will continue and display a willingness to resolve the dispute. The caveat is that no deal is in sight and negotiations remain stalled. The two sides are expected to meet later this month but what happens then, if anything, is anyone’s guess. China has also taken the dispute to the WTO in hopes they will force a resolution however unlikely that is.

The major indices are all down about -0.80% to -0.85% in early trading. The chips stocks are in the lead but losses are broad if focused on international businesses. The retail sector is also moving lower because this latest round of tariffs is expected to impact consumers more than in the past. Later today, traders will be watching out for manufacturing PMI and construction spending figures. Later this week, economic data includes the ADP labor report, the NFP report, and ISM services. Next week the FOMC meets.

European Stocks Move Lower, Brexit Drama Heats Up

The European markets are moving lower at midday on Tuesday on growing geopolitical fears. While the U.S./China trade war is the driving force of global market action it is the Brexit drama that has the attention of traders in the EU. This week there is a chance a bi-partisan group of MPs will force an emergency debate, reopening Parliament, and effectively blocking the no-deal Hard-Brexit. PM Boris Johnson’s ruling party has let it be known he will call for a snap election if the MPs are successful in their bid to take over control of Parliamentary direction.

The French CAC is leading the EU market lower with a loss of -0.45% while the DAX and FTSE trail with losses near -0.25%. In stock news, shares of Iliad are down nearly -2.75% after the company reported weaker than expected 1st half results. Shares of Takeaway are also down more than -2.5% after a leading shareholder of JustEat voted to block a proposed merger.

RBA Holds Rates Steady As Focus Shifts To Central Banks

Asian markets closed mixed after Tuesday’s session as focus shifts to the central bankers. In today’s news, the Reserve Bank of Australia decided to hold rates steady but left the door open for future cuts. The banks chief said they are waiting to see what kind of boost the last two rate cuts would provide. The RBA also says to expect lower rates for an extended period of time. And that it doesn’t think the last two cuts were enough to get inflation back on track. The Nikkei and Shanghai both posted advances of 0.02% and 0.21%. the Hang Seng, ASX, and Kospi all posted losses, the Hang Seng leads with -0.39% the ASX lags at -0.90%.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.