Markets Right Now: Stocks fall on fresh worries over trade

Asian stocks tumble after new Trump tariff threat

Futures signaled losses for Hong Kong shares as traders return from a holiday, while Japanese futures also pointed lower.

If China looks to raise its tariffs on United States goods again, President Trump plans to tack additional tariffs on another US$200bn worth of goods. China clearly disagrees, which is why we believe we are heading into a tit-for-tat scenario, in which we believe the USA will soon raise the amount subject to tariffs to USD150bn.

Mr Trump recently ordered tariffs on 50 billion dollars in Chinese goods in retaliation for intellectual properly theft. Russian Federation has calculated the damage of its proposed tariffs to be about $537.6 million, while Oreshkin said Tuesday that the first stage of tariffs against the USA would amount to about $93 million.

"Therefore, today, I directed the United States Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent".

The Dow was trading at 24,694 as of 12:10 p.m.

The S&P 500 index is off by 11 points, or 0.4 percent, to 2,762.

Spreadbetters expected Britain's FTSE to open down 0.3 percent, with Germany's DAX seen shedding 0.7 percent and France's CAC losing 0.8 percent. Commodities such as oil, copper and soybeans fell. Construction equipment maker Caterpillar closely followed with a 3.6 percent drop.

Brent fell 0.7 percent to $72.93 in response to reports that top suppliers Saudi Arabia and Russian Federation would likely increase production.

Broad measures of American equities have held up better than their Chinese counterparts, but striation within the USA markets suggests that investors anticipate steep losses in some stalwart names.

At the heart of the dispute is the ballooning trade deficit between the United States and China. US officials argue that this program unfairly discriminates against USA and other foreign companies operating in China.

Trump accused Beijing of being unwilling to resolve the dispute over complaints it steals or pressures foreign companies to hand over technology.

"Just ask yourself: Would China have allowed America to do to it what China has done to America?" he said later. Apple fell 1.9 percent to $185.16 and Facebook gave up 1.2 percent to $195.92. Chemicals company DowDuPont lost 3.4 percent to $65.48.

The euro was steady at $1.1622.

CURRENCIES: The dollar edged down to 110.02 yen from 110.07 in late trading Tuesday.

Companies also are watching the fate of ZTE Corp.

The flags of the USA and China hang outside of 85 Broad Street, headquarters for the investment bank Goldman Sachs in New York, October 23, 2008.

Chinese companies listed in the USA took sharp losses.

JD.Com's US-listed shares were up 2.5 percent after Alphabet's Google invested $550 million in the Chinese e-commerce powerhouse. The benchmark Shanghai Composite Index dropped 3.8% to 2907.82, its lowest in almost two years. "But investors should be cautious". The yield on the US 10-year Treasury fell to 2.89 percent from 2.92 percent.

The Canadian dollar averaged 75.32 cents United States, down 0.39 of a USA cent, as it continues to face the twin pressures of rising U.S. rates and trade fears, especially related to NAFTA.

Stocks are trading lower at midday Tuesday on fresh worries about a trade dispute between the US and China, although they've recovered somewhat from an early slump. In April the Commerce Department blocked ZTE from buying US components for seven years, a move that amounted to a death sentence for the company.

Targeting petroleum puts the Trump administration's "energy dominance" agenda in Beijing's cross-hairs as US shale has grabbed share from Middle East suppliers in Asia. Oil slipped and the dollar edged lower. Oxford Economics estimates that if Trump imposed the $200 billion in duties and China responded in kind, US growth could slow by 0.3 percentage point next year.

There were still a few gainers to be found on Wall Street.

Investors sought safer investments, such as high-dividend companies like utilities and companies that make and sell household goods. The drugstore chain and pharmacy benefits manager said it will start making home deliveries of prescriptions and other items. The Russell is up nearly 10 percent this year while the S&P has risen 3 percent and the Dow is flat.

Twenty-First Century Fox is jumping after it agreed to a new deal with Disney, which will buy Fox's entertainment businesses for more than $70 billion.

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