U.S. Stock Market

Asia-Pacific equities recover as US-China trade dispute fears ebb. Sterling dips briefly after Trump makes harsh Brexit comments on visit to Britain

Stocks mostly climbed in Asia as concerns about US plans for tariffs on $200bn of imports from China continued to dissipate. The pound dipped briefly following comments from US President Donald Trump suggesting the UK’s current Brexit plans would forestall a bilateral trade deal, while oil prices edged lower after a partial recovery during the previous session.

Stocks bounce higher as investors track trade tension. Crude oil prices stabilise following biggest one-day tumble in more than two years

What you need to know:
Stocks rebound as traders move back in after trade dispute sell-off.
Investors hope measures taken in the clash will not match its rhetoric.
Optimism ahead of earnings season also supports sentiment.
Oil prices rebound after sharp drop on fears for demand from China.
Turkish lira touches fresh record low as concern at rate outlook rises.
US consumer price inflation hits highest since 2012.

Morgan Stanley is bracing for a turn lower in the stock market and is recommending clients to shift away from the technology stocks that have helped drive US equities higher and move into more defensive sectors such as consumer staples, telecoms and utilities.

StockMarketNews.Today – Major US stock indices stumbled as global trade disputes intensified. But a strong economic backdrop, bolstered by solid US jobs data on Friday, have offered some respite, with the S&P 500 and the Nadaq Composite up 3.7 per cent and 11.7 per cent respectively

President Donald Trump is already threatening additional rounds of tariffs, possibly targeting more than $500 billion worth of Chinese goods – roughly the total amount of U.S. imports from China last year.

StockMarketNews.Today – It will take weeks or months for the U.S. Trade Representative to review and possibly activate any new rounds of punishment.
China’s commerce ministry said it was forced to retaliate, meaning imported U.S. goods also faced 25 percent tariffs.

China’s stock market remains under pressure and European stocks are drifting as investors continue to watch for signs that the trade dispute between China and the US could be influencing China’s policy on its currency.

What you need to know:
Equities lower as trade fears persist.
European tech stocks track losses for the sector overnight on Wall Street.
Renminbi moves further up off lows as attention stays on China’s currency policy.
Chinese stock indices stay under more pressure than their peers.
Sterling bounces up after reassuring services sector economic data.

Leading quote
“Possible trade wars are just another worry on top of other existing global economic problems, but the expectation of recession is usually necessary for a bear market to occur and we don’t believe that is about to happen,” says Jane Sydenham, investment director at Rathbones.

Investors were greeted by a sea of red across global equities markets Monday, as U.S. and European stocks fell following a slump in Asia at the start of a crunch week for global trade. Political risks sent the dollar higher with Treasuries, roiling emerging markets.

“Trade and tariff tensions continued to weigh on global equities as well as emerging market currencies,” John Stoltzfus, the chief investment strategist at Oppenheimer & Co., wrote in a note to clients Monday. “This is likely to persist particularly as the July 6 deadline looms for the Trump Administration’s planned imposition of tariffs.”