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• European shares open sharply lower on Wednesday morning after U.S. authorities unveiled a new list of Chinese products that could see new tariffs.
The pan-European Stoxx 600 was off by 0.8 percent with all sectors in the red.
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• A sell-off in Chinese markets knocked Asian stocks on Wednesday as U.S. threats of tariffs on an additional $200 billion worth of Chinese goods pushed the world’s two biggest economies ever closer to a full-scale trade war.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.1 percent. The index had gained for the past two sessions, having enjoyed a lull from the trade war fears that lashed global markets last week.
• Japan’s Nikkei snapped a three-day winning streak on Wednesday after the United States said it would impose tariffs on an additional $200 billion worth of Chinese goods, hitting shippers and machinery makers hard.
The Nikkei share average ended 1.2 percent lower at 21,932.21 with the index retreating from a 2-1/2-week high hit the previous day after gaining for three straight sessions.
• China’s stocks slumped on Wednesday and the yuan was weaker as the United States threatened further import duties on Chinese goods in a sharp escalation of the trade conflict between the world’s two biggest economies.
The Shanghai Composite index .SSEC was 2.4 percent lower in afternoon trade. The blue-chip CSI300 index .CSI300 was also down 2.4 percent.
• Investors could fall out of love with equities during the next 18 months as the impact of fiscal stimulus in the U.S. fades away, a strategist told CNBC on Tuesday.
• But with trade tensions and political uncertainty currently “priced in,” there is still room for growth in equity markets, Mike Bell, global market strategist at J.P. Morgan Asset Management, said.
• “It’s all about time horizon… If you look at the second half (of the year), I think there’s quite a lot of bad news priced in at the moment, both on the trade front, obviously political uncertainty outside of trade is pretty elevated, so we are still overweight equities,” Bell told CNBC’s “Squawk Box Europe.”
“Once you start to look beyond that (end of the year), the story becomes a little bit more complicated,” he addedReference: Reuters,CNBC
Reference: Reuters,CNBC
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