(Reuters) – Wall Street stocks were mainly lower on Thursday after the United States of America announced that they would levy tariffs on aluminum and steel imports from Canada, Mexico and the European Union, ending a two-month tax exemption would set the stage for a trade war with some of America's best allies.
Meanwhile, a magazine reported that US President Donald Trump is now focusing be it if you push German cars out of the country.
ZHIWEI REN, MANAGING DIRECTOR AND PORTFOLIO MANAGER, PENN MUTUAL ASSET MANAGEMENT, HORSHAM, PENNSYLVANIA
"This is another negotiating tactic on the part of the US as further negotiations are held." US wants customs duties as a bargaining tool I think it's very important to have a long-term perspective and not to trade in such an environment. "
" Although the risk is for companies, they must plan supplies and where they will be for the next six and how can they do that in such an environment? "
" And that's why people buy small caps, the small caps are immune to all these global events, and everyone knows it's the US dollar. " Economy goes well and FAANG, people know that these companies will grow no matter what happens. "
SEAN SIMKO, HEAD OF GLOBAL FIXED INCOME MANAGEMENT, SEI, OAKS, PENNSYLVANIA
"From now on, the market is getting this going. It is still early in a process. I am surprised that we have not seen any knee-jerk reaction. This will prolong and complicate the renegotiation of NAFTA during the summer. It throws a wrench into the mix. This will limit returns on the Treasuries market and keep the trend for cheap flutter in fashion.
"Investors will see how this will develop over the coming months and quarters to gauge the impact of retaliation and determine whether governments will take world trade restrictions to the next level."
"The News A trade war has been spreading in the last six months. We have positioned ourselves accordingly since the beginning of the year. We see ourselves as safe-haven assets as a backup. But we did not bring the 10-year Treasuries back below 3 percent in the last rally. We continue to keep credit, but we are selective with what we buy. We still see value in investment grade credit. Today's headlines do not change our portfolios significantly. "
CHUCK CARLSON, CHAIRMAN OF HORIZON INVESTMENT SERVICES IN HAMMOND, INDIANA
" Trade or international relations, one day it is the next day it is. We will just have to get used to it in this world live when the White House maneuvers and negotiates. This is only part of the negotiation. I would think the market would realize that at this point. "
" There is an additional problem here on the market with tariffs that may not have been there six months ago … … are we starting to see gaps in the international growth story? If that is the case, it will not be helpful to put the tariffs in the mix, not only for the US, but also internationally. "
" There is a bit more of the potential negative that comes with it. We're starting to take a reading, bearing in mind that we're re-evaluating the history of overseas economic growth, and these additional tariffs continue to set this story down Pressure. "
" What it means for the market is more in the hands of a trading mentality than an investment mentality.
"Participants are looking for things to trade and we are basically through the winning season. "
DANIEL KATZIVE, HEAD OF THE FX STRATEGY NORTH AMERICA, BNP PARIBAS, NEW YORK
" On balance, adjusted trading measures are usually considered negative for the USD as they are assumed to be on a continuum and a weaker one Prefer currency. But it can also affect the risk environment and economic prospects in other countries that make things complicated. "
AARON KOHLI, INTEREST RATES, BMO CAPITAL MARKETS, NEW YORK
" So far, ironically, it has not gotten as much attention as it should. People are so focused on a lot of European theatricality … people really miss the idea that one of the problems with our trade negotiations is that we do not tackle these things individually, there is a big correlation between the results. So, if you are striving for a hard line with Canada, it is very unlikely that you will take a softer line with Europe, and that means the impact will be much more binary than I think people expect. It's not just a conflict with one or two or three, it's all at the same time.
"I think there is much more to the trade conflict than people realize, the potential for spot bottlenecks, the potential for short term inflation spikes, all of this is very strong and in a way that is currently difficult to quantify." 19659006] "It is unclear whether it will be enforced and at least in the political front in the US seems … it is not quite as fixed as the headlines make it seem. Some of these sanction headings are only posting, it is not a pure substance. The difficulty of making a handicap comes from this core, how reliable is that? Does Wilbur talk to Ross or Steve Mnuchin or Peter Navarro? Who knows who politics is, is now and in the middle. This makes trading harder to discriminate and fully appreciate. "
KEN POLCARI, DIRECTOR OF THE NYSE FLOOR DIVISION AT O 'NEIL SECURITIES IN NEW YORK
" I'm not doing anything great with the tariff stuff. Again, it's not something that comes from the left field – we've talked about it (Trump) has threatened, he will do it, he will not do it. Now he will do it. The market expects half of it, which is why you do not see this real massive sell-off on the market. I think (the S & P) will try to find some stability in support at 2.710, which is more the short-term support, and it will hold it today. I do not think this is a reason for the sell-off of the market, as on Tuesday after the Italian product came out, because much that came out in Italy at the weekend was something the market was unprepared for. The tariff matter for which the market is prepared. People understand it, whether they appreciate it or not, or the market appreciates it, I do not think it will sell the market. The market will be so weak today, it will test 2,710, and I think it will last. "
JIM O 'SULLIVAN, US economist, HIGH FREQUENCY CONJUNCTURE, VALHALLA, NEW YORK
" At the end of the year, there will be some changes in NAFTA. How exactly we arrive there, we are not sure. There was some trouble from the trade. We'll probably see a jump in the national manufacturing survey tomorrow. We have already seen that in the regional surveys. Trade remains a risk, but it does not look like there's going to be a major trade war. The US economy can handle some duties. There could be more strength without the trade risk. At this time, the Fed sees this as a source of downside risk, but it has not become a major threat. The news of jobless claims is that the job market is still improving.
EQUITIES: The S & P 500.SPX lost 0.30 percent in early trading and the Dow .DJI had fallen 0.69 percent, but the Nasdaq .IXIC posted a gain of 0, 09 percent on.
BONDS: Ten-year US government bond yields were down slightly at 2.8350 percent.
FOREX: Dollar index .DXY was down 0.07 percent, with the dollar close to the dollar The Mexican peso MXN weakened more than 1 percent against the dollar and temporarily crossed the threshold from 20 to the weakest against the greenback in 14 months, down 0.6 percent against the Canadian dollar CAD =.