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Home / Business / Dow drops 200 points as Trump tweets amount to $ 11 billion in tariffs on EU products

Dow drops 200 points as Trump tweets amount to $ 11 billion in tariffs on EU products



US. Stocks fell at the start of trading on Tuesday, in light of the threat of a renewed escalation of tariff conflicts with the European Union, which threatened an eight-day winning series for the S & P 500.

How do benchmarks work?

The Dow Jones Industrial Average

DJIA, -0.70%

lost 223 points, or 0.8%, at 26,115, while the S & P 500 index

SPX, -0.50%

fell 1

9 points. or 0.7% at 2,877. The Nasdaq Composite Index

COMP, -0.21%

fell 35 points or 0.4% at 7,919.

On Monday, the Dow fell 83.97 points or 0.3% to 26,341.02, while the S & P 500 rose 3.03 points, or 0.1%, to 2,895.77, marking the longest winning streak since October 2017 The tech-focused Nasdaq Composite Index rose 15.19 points or 0.2% to 7,953.88.

What drives the market?

A new collision in international trade is being digested by investors early in the morning after the US Trade Representative's office threatened to impose tariffs on many European goods late Monday. The threat is a retaliatory measure against subsidies granted by European companies to aircraft manufacturers. Airbus SE

EADSY, -1.74%

If the US comes through, the proposed tariffs would mean about US $ 11 billion for imports of the US, including helicopters, bicycles, and cheese Wine.

Lighthizer said the Trump administration is waiting for approval from the World Trade Organization to fulfill the duties. President Donald Trump tweeted on Tuesday morning that the EU had exploited the US, adding that it would "soon stop":

New tensions in international trade are coming to fruition when the Trump administration was about to solve a yearlong spree with China, which was in China has dissolved markets because a clash between the world's largest economies could disrupt global economic growth, market participants said.

British Prime Minister Theresa May was scheduled to meet Federal Chancellor Angela Merkel and French President Emmanuel Macron to discuss the prospect After a long delay in the country's planned divorce from the European Union.

Regardless, the International Monetary Fund lowered growth prospects in 2019 from 3.3% in January to 3.3% and in October to 3.7%, representing its third decline in growth expectations in six months. The decline was broadly felt, with all major advanced economies including the US and most emerging economies deteriorating in their outlook.

Read: Brexit Letter: May on a Merkel and Macron mission

What do strategists say?

"The mood in continental Europe is holding up well, considering that tensions between Washington DC and Brussels have increased in relation to the threat of $ 11 billion in tariffs on European imports," wrote David Madden, Market analyst at CMC Markets. in a business research report.

Which data are the focus?

A job vacancy report for February is expected to be released at 10 am Eastern Time.

Prior to this report, little was read in March, according to a March poll published on Tuesday, that optimism for small businesses was somewhat changed in March. The National Federation of Independent Business reported that the small business optimism index rose 0.1 points to a seasonally adjusted 101.8, marking a narrow range for the third month in a row.

Which stocks are in focus?

Shares of Wynn Resorts Ltd .

WYNN, -3.77%

are in focus after the company ended its talks on the purchase of Australian Crown Resorts shortly after confirming that it was in negotiations. The stock fell 3.4% early Tuesday.

Shares of shares listed in Paris of Airbus SE

AIR, -1,86%

decreased by 2% due to the US customs threat. Listed US stocks

EADSY, -1.74%

fell 0.7% on Tuesday morning.

Avaya Holdings Corp. .

AVYA, + 3.46%

Equities were in focus after Bloomberg reported on Thursday evening (paywall) that the company is organizing a sales process for communications software after receiving unsolicited offers. The shares rose by 2.8%.

General Electric Co .

GE, -2.76%

The stock remained under pressure on Tuesday, a day after the J.P. Morgan, Stephen Tusa, had downgraded the stock. Industrial conglomerate shares fell 5.1% on Monday and 3.2% on Tuesday morning.

Stocks of American Airlines Group Inc. .

AAL, -3.31%

fell 1.3% after the company had cut its forecast for the first quarter.

How are other markets acting?

The markets in Asia closed inconsistently with the Japanese Nikkei 225

NIK, + 0.19%

+ 0.2%, Hong Kong's Hang Seng Index

HSI, + 0.27%

rose 0.3%, the Shanghai Composite Index

SHCOMP, -0.16%

lost 0.2%. European equities were slightly lower with the Stoxx Europe 600

SXXP, -0.44%

decreased by 0.4%.

In the commodity markets the price of oil

CLK9, -0.56%

fell lower while gold futures of

GCM9, + 0.47%

climbed. The dollar

DXY, -0.16%

ticked lower in the meantime.

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