Overseas Market Report
US stocks have fallen, led by declines in technology and consumer discretionary stocks as investors looked to President Donald Trump’s announcement regarding tariffs on $US200 billion of Chinese imports.
All three major US indexes were lower, with the tech-heavy Nasdaq posting its biggest percentage loss since late-July. Wall Street extended its losses ahead of the tariff announcement after Trump asserted his belief that the United States’ trade deficit with China was too big, stating “we can’t do that anymore.”
Earlier, China vowed that it will not play defence in the escalating trade dispute, adding further fuel to tensions as a new list of items subject to tariffs, including technology and consumer goods, was anticipated from Washington. “This is the sixth or seventh time we talked about this particular round of tariffs,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. “As long as Trump is comfortable raising tariffs, he believes he’s winning.”
Consumer discretionary and technology were the biggest percentage losers on the S&P 500, falling 1.3 per cent and 1.4 per cent, respectively.
Morning Market Note - Tuesday 18th September