SP500 logs fourth straight loss after Trump announces new China tariffs

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Dollar weakens as manufacturing slows
US stock indexes relinquished early gains on Thursday after President Trump tweeted US will impose a 10% tariff on $300 billion of Chinese imports from September 1. The S&P 500 lost 0.9% to 2953.56. The Dow Jones industrial average fell 1.1% to 26583.42. Nasdaq composite index slid 0.8% to 8111.12. The dollar weakening resumed as manufacturing indexes of both ISM and Markit indicated manufacturing expansion slowed in July: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, fell 0.2% to 98.38 and is lower currently. Stock index futures point to lower market openings today


CAC 40 leads European indexes advance
European stocks extended gains on Thursday on back of strong quarterly results. EUR/USD turned higher while GBP/USD accelerated its decline yesterday as the Bank of England (BOE) held interest rates steady at 0.75%. Both pairs move in previous session’s directions currently. The Stoxx Europe 600 index ended 0.4% higher. Germany’s DAX 30 gained 0.5% to 12253.15. France’s CAC 40 rose 0.7% while UK’s FTSE 100 slipped 0.03% to 7584.87 as BOE cut its growth forecast to 1.3% for 2019 and 2020, down from 1.5% and 1.6% respectively.


Hang Seng leads Asian indexes losses
Asian stock indices are sharply lower today as President Trump tweeted about 10% tariffs to take effect September 1 on an additional $300 billion of Chinese imports after US negotiators briefed him of the recent trade meeting in Beijing. Nikkei fell 2.1% to 21087.16 as yen slowed its slide against the dollar. Chinese shares are tumbling as Chinese officials expressed their disagreement saying additional tariffs is not a constructive way to resolve economic and trade frictions: the Shanghai Composite Index is down 1.4% and Hong Kong’s Hang Seng Index is 2.4% lower. Australia’s All Ordinaries Index slid 0.3% as Australian dollar resumed its climb against the greenback.

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Brent rising
Brent futures prices are recovering today. Prices sank yesterday: October Brent crude lost 7% to $60.50 a barrel on Thursday.