HONG KONG (AP) — World stock markets slid Friday after Beijing vowed to fight back against the Trump administration’s latest threats of yet more tariffs on Chinese imports, renewing investor fears of a brewing trade battle between the world’s two biggest economies.
KEEPING SCORE: European shares fell in early trading. France’s CAC 40 lost 0.6 percent to 5,246.95 and Germany’s DAX shed 0.8 percent to 12,207.37. Britain’s FTSE 100 slipped 0.2 percent to 7,182.98. Wall Street was poised to open sharply lower. Dow futures skidded 0.9 percent to 24,255.00 and broader S&P 500 futures sank 0.8 percent to 2,641.00.
ASIAN SCORECARD: Japan’s benchmark Nikkei 225 index dipped 0.4 percent to close at 21,567.52, while South Korea’s Kospi slipped 0.3 percent to 2,429.58. Australia’s S&P/ASX 200 was flat at 5,788.70, but Hong Kong’s Hang Seng rose 1.1 percent to 29,844.94 after trading resumed following a holiday as investors caught up with the previous day’s global gains. Singapore’s share index rose, while those in Indonesia, the Philippines and India fell. Mainland Chinese markets remained closed for a holiday.
TRADE TIFF: U.S.-China trade tensions stepped up another notch after President Donald Trump instructed the U.S. trade representative to consider slapping an extra $100 billion in tariffs on Chinese goods. China responded by indicating it wouldn’t back down, saying it would fight back “at any cost,” according to a statement from the Commerce Ministry. The surprise move was a further escalation of the deepening dispute between the world’s two biggest economies, which just days earlier announced plans for $50 billion in import duties on each other’s goods. The earlier tariff threats roiled financial markets but they had rebounded Thursday on investor hopes the U.S. and China indicated would find a diplomatic solution.
MARKET INSIGHT: “Our view remains that a negotiated solution is most likely and so the tariffs ultimately won’t be implemented or will be much milder if they are,” said Shane Oliver, head of investment strategy at AMP Capital in Sydney. “However, negotiations could take months. In the meantime, there will be ongoing noise around the issue” and financial markets will remain volatile, he said.
OUTLOOK: Investors are awaiting the latest monthly U.S. jobs report due later Friday, which will provide the latest insight into the state of the world’s No. 1 economy. Economists forecast that American employers added 185,000 jobs in March, pushing the unemployment rate down to 4.0. Market moving events next week include Wednesday’s release of Federal Reserve minutes, which could provide fresh clues on the timing of future rate increases, and Chinese export data on Friday, an indication of global demand for the world’s No. 2 economy.
WALL STREET: Major U.S. benchmarks ended higher. The S&P 500 index climbed 0.7 percent to 2,662.84. The Dow Jones industrial average rose 1 percent to 24,505.22. The Nasdaq composite added 0.5 percent to 7,076.55.
ENERGY: Benchmark U.S. crude fell 26 cents to $63.27 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 17 cents to settle at $63.54 a barrel on Thursday. Brent crude, used to price international oils, lost 28 cents to $68.05 per barrel in London.
CURRENCIES: The dollar slipped to 107.39 yen from 107.40 yen The euro rose to $1.2235 from $1.2241.
(Copyright (c) 2018 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)