Wall Street Sees Red As China Imposes Tariff On U.S. Imports

Wall Street Sees Red As China Imposes Tariff On U.S. Imports

After the long holiday, the market will be back to business today and the ISM’s Manufacturing Index and Markit’s PMI are the major focus of the day.

The investors are closely watching the impact of Chinese tariff on 128 products of U.S. imports worth $3 billion. China is retorting of President Trump’s tariff on imports from China and other countries.

Asian shares finished mostly lower, while European shares are trading on a positive note.

As of 7 am ET, the Dow futures were slipping 105 points, the S&P 500 futures were shedding 10.25 points and the Nasdaq 100 futures were slipping 55.25 points.

U.S. stocks closed mixed on Thursday before the long holiday. The Dow ended up 2.7%, S&P 500 rose 2.1 percent and Nasdaq inched up 1 percent. However, for the first quarter the Dow was 2.3 percent lower.

On the economic front, the Markit Economic’s monthly Purchasing Managers’ Manufacturing Index for March will be issued at 9.45 am ET. The market analysts are looking for consensus of 55.7, compared to 55.3 in the prior month.

The Institute for Supply Management’s Manufacturing Index for March is expected at 10.00 am ET. The consensus is for 60.0, slightly down from 60.8 in the prior week.

Construction Spending for February will be published at 10.00 am ET. The forecasters are looking for 0.5 percent increase.

Minneapolis Federal Reserve Bank President Neel Kashkari will speak at a Student Town Hall in Duluth, Minnesota with audience Q&A at 6.00 pm ET.

In the corporate segment, Transcontinental Inc. announced a definitive agreement to acquire the business of Coveris Americas, a business held by Coveris Holdings S.A., a portfolio company of Sun Capital Partners, Inc. The purchase price is $1.32 billion.

Asian stocks ended mostly lower on Monday. Financial markets in Europe, Australia, Hong Kong and New Zealand were closed for the Easter holiday.

China’s Shanghai Composite index finished down 5.72 points or 0.18 percent at 3,163.18 as China imposed tariffs on 128 types of U.S. imports starting Monday.

While official data pointed to accelerating growth in manufacturing activity in March, the Caixin survey revealed that China’s manufacturing activity grew at its slowest pace in four months in the month.

Japan’s Nikkei average dropped 65.72 points or 0.31 percent to 21,388 while the broader Topix index closed 0.44 percent lower at 1,708.78. The business confidence deteriorated in the first quarter on stronger yen and fears of trade war, the quarterly Tankan survey released by the Bank of Japan revealed.

The headline Nikkei Manufacturing Purchasing Managers’ index dropped to 49.1 from 50.3 in February. Market heavyweight Samsung Electronics declined 1.4 percent.

European shares are trading mostly higher. The CAC 40 of France is climbing 36.86 points or 0.72 percent. DAX of Germany is surging 156 points or 1.31 percent. FTSE 100 of England is up 11.87 points or 0.17 percent. Swiss Market Index is slipping 15.15 points or 0.17 percent.

Euro Stoxx 50, that provides a Blue-chip representation of supersector leaders in the Eurozone, is currently up 0.91 percent.

by RTTNews Staff Writer

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