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Global stocks fall as trading ranges



  • Energy Sector Under Pressure
  • Bonds, Yen Earnings
  • World Stocks Fall

Global stocks fell on Wednesday, while government bond prices and the yen rose as investors evaluated trading tensions and a decline in commodity prices ,

The Stoxx Europe 600 lost 1% at midday after a steeper decline in Asian markets. Futures pointed to an opening price of 0.7% after the S & P 500 had fallen in late trading on Tuesday.

Oil and gas companies declined in Europe and Asia, while Brent crude fell 0.9% to $ 78.86 a barrel OPEC could ease supply restrictions next month.

Analysts and investors also said they are watching closely the evolution of world trade, pointing out the uncertainty surrounding an agreement with China over telecom giant ZTE. [Senate Banking Committee] Approved Legislation on Tuesday to Intensify National Security Reviews of Chinese Technology Giants, Reinforce Export Controls, and Ban the Trump Government from Lifting Heavy Penalties Against ZTE.

Industrials, which collected news about the US on Monday, would suspend efforts to impose tariffs on Chinese imports worth $ 1

50 billion and help bring about US declines late Tuesday.

"[Trade] Risk will be more effective for the market than others because it has a direct impact on the economy." Said

Katie Nixon,

Chief Investment Officer of Northern Trust Wealth Management. "They will continue to observe market movements with trade news, whether it's the US or Europe versus steel and aluminum tariffs or with China."

Investors analyzed reports that the president

Donald Trump

is considering measures to cut exports of steel and aluminum from the European Union to the US by about 10%.

The European commodities sector fell 2.3% on Wednesday, putting it at the bottom. Shares of the steel producer

ArcelorMittal

fell 4% at the steel pipe product manufacturer

Tenaris

and stainless steel manufacturer

Outokumpu Oyj

had dropped by about 3%. The broader mining sector was under speculative pressure as China might try to cut coal prices.

The European auto sector, which is often seen as a potential target in margins, fell 1.7%. "The question is, is Europe the next trading target for Trump," said Andrea Cicione, head of macro strategy at TS Lombard.

Italian equities also remained under pressure as the forthcoming anti-establishment government staked off anti-euro positions and began an exceptional situation. Italy's FTSE MIB Index fell 1.5%, losing 4.6% this month, while Italian 10-year government bond yields climbed to 2.430%, up 1.9 percentage points.

"If Italy was in the dark The road to the introduction of all these measures [in a leaked draft agreement] would be a huge budget deficit," said Cicione. "But a coalition like this with a thin majority … will not implement anything like the measures they propose."

As investors generally abandoned high-risk assets, 10-year Treasury yields fell to 3.013% 3,065% late Tuesday, signaling a rise in prices, while the dollar fell 1% against the Japanese yen, which tends to peak in times of market stress to win.

The Euro was up 0.4% to $ 1.1732 as data confirmed business activity in The Eurozone slowed more sharply than expected in May, suggesting that growth has not recovered from the first quarter.

The Turkish lira continued to hit record lows, losing 3.5% against the dollar.

Stocks earlier in Asia US investors responded to losses in the US as investors took into account developments in trade and news, which President Trump said was a planned summit with China plans

Kim Jong Un

unless the North Korean leader initially agreed to a list of unspecified conditions.

Japan's Nikkei Stock Average lost 1.2% on a steep rise in the yen, while Hong Kong's Hang Seng fell 1.8% and Shanghai's shares fell 1.4%

Chinese automakers were under pressure after being known As of July, China will reduce the import tariff on automobiles in a concession to US trade disputes.

Write to Riva Gold at riva.gold@wsj.com


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