The apparent trade war between U.S. and China is getting more revealed with China announcing a tariff increase on U.S. imports worth $50 billion. The higher tariff of up to 25 percent on imports include products such as aircraft, soybean, chemicals, etc. The U.S. is one of the largest importer of Chinese products and already have a trade deficit of around $375 billion.
Early signs from U.S. Futures Index suggest that Wall Street might open steeply down. Gold futures were higher on Wednesday morning.
Asian shares fell down at the closing, while European shares are all down.
As of 7.00 am ET, the Dow futures were loosing 515.00 points, the S&P 500 futures were declining 41.25 points and the Nasdaq 100 futures were down 122.00 points.
U.S. stocks closed significantly higher on Tuesday. The Dow soared 389.17 points or 1.7 percent to 24,033.36, the Nasdaq jumped 71.16 points or 1 percent to 6,941.28 and the S&P 500 surged 32.57 points or 1.3 percent to 2,614.45.
National Employment report and PMI Index announcements on Wednesday are worth watching.
On the economic front, the ADP national employment report for March will be published at 8.15 am ET. The market analysts are looking for consensus of 185,000, down from 235,000 in the last month.
St. Louis Federal Reserve Bank President James Bullard will speak at the Arkansas Bankers Association & Arkansas State Bank Department’s “Day with the Commissioner” in Little Rock, Arkansas, with audience Q&A at 9.45 am ET.
U.S. Services Purchasing Managers’ Index for March is scheduled at 9.45 am ET. The consensus is for 54.1, down from 55.9 in February.
Factory Orders for February will be revealed at 1.00 am ET. The consensus is for growth of 1.7 percent, while it declined 1.4 percent in January.
The Institute For Supply Management’s Non-Manufacturing Index for March will be issued at 10.00 am ET. The analysts are looking for consensus of 59.0 in line with 59.5 in the prior month.
The Energy Information Administration or EIA’s Petroleum Status Report for the week is scheduled at 10.30 am ET. In the previous week, the crude oil inventories were 1.6 million barrels.
Cleveland Federal Reserve Bank President Loretta Mester will deliver a keynote speech on diversity in economics at the Central State University’s Leaders, Executives, Entrepreneurs and Directors (LEED) Program, in Wilberforce, Ohio, to be live-streamed on Cleveland Fed’s Twitter handle @clevelandfed, with audience Q&A at 11.00 am ET.
On the economic front, Lennar Corp. reported first-quarter net earnings of $136.2 million, or $0.53 per share, which included $0.31 per share related to acquisition and integration costs and $0.27 per share related to a one-time non-cash write down of deferred tax assets. Excluding items, earnings per share would have been $1.11 per share. First-quarter revenues were $3.0 billion, an increase of 28% from prior year.
Eli Lilly and Company and Sigilon Therapeutics announced a global collaboration to develop encapsulated cell therapies for the potential treatment of type 1 diabetes.
Asian stocks ended lower on Wednesday. China’s Shanghai Composite index gave up initial gains to end down 5.52 points or 0.18 percent at 3,131.11 ahead of the Tomb-sweeping holiday break. Hong Kong’s Hang Seng index finished down 661.41 points or 2.19 percent at 29,518.69.
Japanese shares ended higher in choppy trade. The Nikkei average swung between gains and losses before finishing 0.13 percent higher at 21,319.55. The broader Topix index closed up 0.14 percent at 1,706.13.
On the data front, Japan’s service sector continued to expand in March, albeit at a slower pace, the latest survey from Nikkei revealed with a services PMI score of 50.9, down from 51.7 in February.
Australian shares recouped early losses to end modestly higher, snapping a three-session losing streak. The benchmark S&P/ASX 200 index ended up 9.50 points or 0.17 percent at 5,761.40 while the broader All Ordinaries index finished marginally higher at 5,863.70.
European shares are trading in the red. The CAC 40 Index of France is falling 51.82 points or 1.01 percent. The German DAX is loosing 188.37 points or 1.57 percent, the U.K. FTSE 100 Index is declining 50.39 points or 0.72 percent. The Swiss Market Index is down 103.87 points or 1.20 percent.
The Euro Stoxx 50 Index, which is a compilation of 50 blue chip stocks across the euro area, is down 1.26 percent.
by RTTNews Staff Writer
For comments and feedback: firstname.lastname@example.org