· Wall Street stepped back from last week’s record highs on Monday, with weak U.S. manufacturing data and fresh trade worries keeping buyers on the sidelines.
The Dow Jones Industrial Average .DJI fell 267.35 points, or 0.95%, to 27,784.06, the S&P 500 .SPX lost 27 points, or 0.86%, to 3,113.98 and the Nasdaq Composite .IXIC dropped 97.48 points, or 1.12%, to 8,567.99.
Still, it was the latest sign that the multi-front trade between the United States and its global trading partners will continue to dominate markets and hinder global economic growth.
The news comes on the heels of recent Wall Street highs, driven to records last week on hopes of an imminent “phase one” trade agreement between the United States and China.
A senior adviser to Trump said on Monday it was still possible that a deal with China could be reached by the end of the year.
· Stocks in Asia fell Tuesday morning following negative trade developments overnight as U.S. President Donald Trump said that he will reinstate tariffs on U.S. steel and aluminum imports from Brazil and Argentina.
In a tweet, Trump said: “Brazil and Argentina have been presiding over a massive devaluation of their currencies. which is not good for our farmers. Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries.”
The Nikkei 225 in Japan pared some of its earlier gains but still remained 0.81% lower in morning trade while the Topix index shed 0.67%. South Korea’s Kospi slipped 1.08% as shares of chipmaker SK Hynix dropped more than 2%.
Shares in Australia declined in morning trade, with the S&P/ASX 200 dropping about 1.8%. The Reserve Bank of Australia’s interest rate decision is set to be out around 11:30 a.m. HK/SIN on Tuesday.
Overall, the MSCI Asia ex-Japan index traded 0.42% lower.
Market reaction to retail stocks in Hong Kong will be watched on Tuesday, after data on Monday showed total retail sales volume for October in the embattled city dropped 26.2% year-on-year — its worst decline on record, according to a Reuters report. The city has been rocked by months of anti-government protests.
Reference: CNBC, Reuters
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