Asian equities fell on Wednesday after a decline on Wall Street amid growing tensions between the US and the European Union and a weak global economic growth forecast.
Japan's benchmark Nikkei 225
fell 0.6%. The Australian S & P / ASX
XJO, + 0.03%
was flat along with South Korea's Kospi
SEU, + 0.49%
Hong Kong's Hang Seng
fell 0.4%, while the Shanghai Composite
SHCOMP, + 0.07%
fell by nearly 0.4%.
On Wall Street the S & P 500
index fell 17.57 points or 0.6% to 2,878.20. The Dow Jones Industrial Average
fell 190.44 points or 0.7% to 26,150.58. The Nasdaq composite
slipped 44.61 points or 0.6% to 7,909.28. The Russell 2000 Index
of the small cap stocks issued 19.32 points, or 1.2%, or 1559.68.
European indices also ended down after the US threatened to impose $ 11.2 billion in tariffs on European products, including cheese, wine and helicopters.
President Donald Trump's threat may still have investors worried about trade disputes that are leading to a period when the US is slowing the global economy to resolve a trade dispute with China.
This spad has already made a list of goods more expensive for consumers and burdens the already debilitating Chinese economy. The negotiators met again last week and both sides said they were making progress.
Disappointed traders were also disappointed that the International Monetary Fund lowered its forecast for global growth this year. The IMF now forecasts global growth of 3.3% for the year 2019, the weakest year since 2009. The United States developed particularly poorly in the report. Now, growth of 2.3% is expected, compared with 2.9% in 2018.
Investors will receive further indications about the intentions of the Fed on Wednesday, when the central bank passed the minutes of its last meeting of the political session releases. The European Central Bank will also meet on Wednesday.
"The renewed strain on growth and trade concerns has further undermined sentiment in Asian markets," said Jingyi Pan, market strategist for the Singapore IG.
Benchmark US crude oil
CLK9, + 0.45%
rose 11 cents to $ 64.09. The price fell 0.7% at $ 63.98 a barrel Tuesday. Brent crude oil
LCOM9, + 0.25%
added $ 4 to $ 70.65 a barrel.
USDJPY, + 0.03%
fell to 111.14 yen from 111.28 yen on Tuesday. The Euro
EURUSD, + 0.0622%
fell from 1.1277 to 1.1257 USD.
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