Thursday June 28th

28-06-2018

Dow set to fall 100 points as stocks add to steep weekly losses

U.S. stock index futures fell on Thursday as Wall Street prepared for more losses this week amid rising tensions between the United States and some of its key trade partners. Dow Jones Industrial Average futures fell 125 points, indicating a decline of 100 points at the open. S&P 500 and Nasdaq 100 futures also pointed to losses at the open. Stock futures followed German stocks lower, as the DAX index pulled back 1.5 percent after the release of stronger-than-expected inflation data. That decline sent European stocks down broadly, with the Stoxx 600 index pulling back 1.1 percent. Equities have been under pressure this week as trade tensions between the U.S. and some of its biggest trade partners have mounted. Through Wednesday's close, the Dow is down 1.9 percent for the week, while the S&P 500 and Nasdaq composite are down 2 percent and 3.2 percent, respectively. On Wednesday, a Trump administration official stated that the government would rely on the U.S. Committee on Foreign Investment to take care of matters concerning foreign purchase of domestic technologies that are deemed sensitive. As the topic of trade continues to keep investors around the world on edge, markets appear to be doing the same – awaiting any information. Not only is the U.S. in a tit-for-tat war of words with China on tariffs, but now the European Union is involved after President Donald Trump took to Twitter last week to threaten a 20 percent tariff on all car imports from the bloc. Walgreens Boots Alliance and CVS Health dropped 9.5 percent and 8.1 percent, respectively, after Amazon announced it had bought PillPack, an online pharmacy. Asian stocks closed lower on Thursday, with China markets falling back into negative territory as investors digested developments related to the U.S. stance on foreign investment amid lingering trade concerns. In Tokyo, the Nikkei 225 was little changed, finishing the day lower by 0.01 percent, or 1.38 points, at 22,270.39 and off its lows of the day. Over in Seoul, the Kospi declined 1.19 percent to end at 2,314.24 as technology stocks struggled. China markets turned lower in the afternoon after earlier getting some reprieve from recent losses. On the mainland, the Shanghai compositefell 0.97 percent to 2,785.98, notching its fourth-straight session of declines, and the Shenzhen composite tumbled 1.19 percent to close at 1,556.82. Hong Kong's Hang Seng Index, however, was up 0.42 percent by 3:49 p.m. Oil prices steadied on Thursday, with U.S. crude near a 3-1/2-year high, but supply remained tight with investors concerned by the prospect of a big fall in crude exports from Iran due to U.S. sanctions. U.S. light crude was unchanged at $72.76 per barrel by 1100 GMT, after hitting $73.06 on Wednesday, its highest since November 2014. Benchmark Brent was up 30 cents at $77.92. Gold fell to its lowest in more than six months on Thursday as the dollar held near a one-year high, propelled by mounting pressure from a U.S.-driven trade dispute that has led investors to dump equities. Spot gold was flat at $1,252.13 an ounce. Earlier, it touched $1,248.21, its lowest since mid-December. U.S. gold futures for August delivery dropped 0.2 percent at $1,253.50 an ounce.