Mon, 21 Jun 2021

New U.S. trade tariffs rock Wall Street

Lola Evans
03 Dec 2019, 10 GMT+10

NEW YORK, New York - U.S. investors and traders dumped stocks on Monday, the start of a new and final month for 2019.

Data showing U.S. manufacturing activity contracted in November for the fourth consecutive month, as revealed by the Institute for Supply Management (ISM), raised concerns about the ongoing health of the U.S. economy.

"The weaker-than-forecast manufacturing data doesn't help," Oliver Pursche, chief market strategist at Bruderman Asset Management in New York told the Reuters Thomson news agency Monday. "That trend is likely to continue in the short term."

"The question is will consumers continue to keep the economy afloat," Pursche said. "And so far, the preliminary data regarding Black Friday spending is very positive. It's a big number."

Investors were also exasperated when President Donald Trump announced new tariffs on steel from Argentina and Brazil, raising concerns that the U.S. trade hostilities with its trading partners around the world will continue.

At the close of trading Monday the Dow Jones Industrial Average was behind 267.35 points, or 0.95%, at 27,784.06.

The Standard and Poor's 500 fell 27 points, or 0.86%, to 3,113.98.

The Nasdaq Composite .IXIC shed 97.48 points, or 1.12%, to 8,567.99.

The U.S. dollar was sharply weaker almost across the board. The Canadian dollar however dipped to 1.3306.

The euro was sharply higher Monday, ending the day in New York around 1.1077. The British pound rose to 1.2939.

The Japanese yen was in demand at 109.00, while the Swiss franc gained nearly 1% to 0.9914.

The Australian dollar firmed to 0.6417. The New Zealand dollar wa sharply higher at 0.6497.

Shares in Europe buckled with the German Dax and Paris-based CAC 40 both losing more than 2%. London's FTSE 100 was down 0.92%.

On Asian markets, the Nikkei Composite added 235.59 points or 1.01% to 23,529.50.

China's Shanghai Composite rose 3.83 points or 0.13% to 2,875.81.

In Hong Kong, the Hang Seng jumped 98.23 points or 0.37% to 26,444.72.

The Australian All Ordinaries strengthened by 17.30 points or 0.25% to 6,965.30.

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