Trump's reaction to China's tariffs shocks investors

Traders on the New York Stock Exchange

China is issuing new $ 75 billion in tariffs as early as September.

(Photo: AP)

new York A further escalation in the trade dispute between China and the US severely damaged the New York Stock Exchange on Friday. Investors went bust shortly before the weekend. The Dow Jones Index of Standards closed 2.4 percent lower at 25,628 points. The broader S & P 500 lost 2.6 percent to 2847 points. The index of the technology exchange Nasdaq collapsed by 3.0 percent to 7751 points. In a weekly comparison, the Dow fell by one percent, the S & P by 1.4 percent and the Nasdaq index by 1.8 percent.

In Frankfurt, the Dax slipped by 1.2 percent to 11,612 points. The EuroStoxx50 also fell 1.2 percent to 3334 points.

Previously, China had imposed US $ 75 billion in new tolls. US President Donald Trump announced countermeasures via Twitter. So US companies should look for alternatives to China and manufacture their products in the US.

"Trump's statements have sent shockwaves through the marketplace, destroying all hopes of a de-escalation on the trade front anytime soon," said market analyst David Cheetham of online trading house xtb. Trump's verbal attack on China via social media was "unbelievable" and extremely hard in tone and content even for Trump's standards.

US Federal Reserve Chairman Jerome Powell, meanwhile, held all the balls in the air with his widely acclaimed speech at the Federal Reserve Conference in Jackson Hole, according to analysts. "He did not dampen speculation for another 25bp rate cut at the September meeting, but said nothing that suggests a bigger move is pending," economist Christoph Balz of Commerzbank said.

The highest central banker immediately received harsh criticism from Trump. "As usual, the Fed did NOTHING!" He tweeted. "My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?" Trump tweeted, referring to China's President Xi Jinping, misrepresenting Powell's name

Single values ​​in focus

HP: In individual stocks, HP's shares lost nearly six percent. The boss of the US computer manufacturer Dion Weisler leaves after almost four years.

Hasbro: Hasbro shareholders hit a multi-billion dollar takeover on the stomach. The titles lost almost nine percent. The toy manufacturer wants to take over Entertainment One, the producer of the children's show "Peppa Pig" and the zombie series "Walking Dead", for a total of four billion dollars.

Gap: Quarterly sales below market expectations sent Gap down. The shares of the fashion company collapsed by 4.7 percent. On a comparable basis, revenues were down 4 percent to $ 4.01 billion on a like-for-like basis due to a slowdown in the Old Navy brand. Analysts had expected only a minus of 3.1 percent. The profit fell to 168 from 297 million dollars.

The US credit markets were in demand and were up. Ten-year government bonds gained 26/32 to 100-31 / 32. The yield dropped to 1.5199 percent. The 30-year Bond rose to 1-5 / 32 at 105-6 / 32 and returned 2.0178 percent.

On the New York Stock Exchange about 1.05 billion shares changed hands. 692 values ​​increased, 3144 declined and 187 remained unchanged. On the Nasdaq closed with sales of 2.17 billion shares 502 plus, 2645 in the minus and 146 unchanged.

More: Hard times for investors: The "America first" strategy has a huge impact on the economy and the stock markets. Investors should not get nervous.

Finance briefing


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