U.S stock plunges as trade tension heightens

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The United State stock index fell on Monday as growing trade tensions between the United States and China kept investors on edge, with the latest threat involving a check on Chinese investments in U.S. technology firms.

Chipmakers and U.S listed Chinese companies were among the most traded stocks in early premarket trading on Monday.

Advanced Micro Devices fell 0.4 percent and Alibaba dropped 1.7 percent.

The move marks another escalation of President Donald Trump’s trade conflict with China, which has sent ripples across financial markets and threatened to dent global growth.

The Dow Jones Industrial Average lost 2 percent last week, posting its weakest weekly performance since late March, after Trump threatened to impose a 20 percent tariff on all European Union car imports.

The European Union (EU) which has promised retaliatory measures on motorcycle maker Harley-Davidson, bourbon and other products vowed to respond.

Harley fell 2.7 percent on Monday after the company forecast additional costs between $30 million and $45 million for the rest of 2018, due to EU tariffs.

Dow e-minis were down 166 points, or 0.67 percent and Nasdaq 100 e-minis were down 60.25 points, or 0.83 percent.

Brent crude prices, which provided support to the equity markets last week, fell more than 1.5 percent as investors prepared for an extra 1 million barrels per day in output to hit the markets after OPEC and its partners agreed to raise production.

 

Peace PIAK