Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
Stock trading continues to be penalized by fears of political instability in Europe. With the scenario in Italy moving towards a resolution via a “political government” but the outlook in Spain to point to the fall of government tomorrow with the vote on the motion of censorship. But the concern that we are facing an imminent trade war is also in the offing, with US President Donald Trump adding more fuel to the fire.
Trade tensions today have thrown Wall Street into the red. The Dow Jones closed down 1.02% to 24,415.84 points and Standard & Poor’s 500 fell 0.69% to 2,705.27 points. For its part, the Nasdaq Composite depreciated by 0.27%, valued at 7,442.11 points. The United States today announced the imposition of customs duties on imports of steel and aluminum from the European Union, Canada and Mexico. Those concerned have already promised to retaliate. This after the White House said Tuesday that the final list of products imported from China will be published by June 15, which will be subject to a new tariff of 25%, to come into force “shortly after” that date. The objective of this tariff is to reach a value of 50 billion dollars in order to balance the commercial relationship between the two largest economies. But Beijing also has a list to retaliate. Already last week Trump had created instability after a White House official told Reuters the president was considering imposing new tariffs on imported cars for “national security” issues – the same justification given when it came to steel and aluminum.