Market Update & Important Indicators:
U.S. stocks edged higher intraday as investors viewed a fresh round of tariffs on Chinese goods, as well as China's early response, as more measured than previously expected. Initially, U.S. stock futures and stocks in Asian markets tumbled after the news late Monday that Washington is to impose further tariffs on Beijing. But because the introduction of the tariffs will be staggered, there is cautious optimism that there may be time for negotiations between the two countries, some traders said. The Dow Jones Industrial Average gained 185 points, or 0.7%, to 26247 and S&P 500 rose 0.5% in recent trading, while the Nasdaq Composite Index gained 1.1%. President Trump late Monday announced new tariffs on $200 billion in Chinese goods. The White House said the 10% tax is set to be imposed Sept. 24 on a range of Chinese imports, including luggage and seafood. That levy will rise to 25% at the end of 2018. In response, China's commerce ministry said it "has no choice but to undertake synchronous retaliation" to defend its interests and unveiled plans for tariffs on an additional $60 billion of U.S. goods. The US gold price declined 0.3% to 1197.90 US$/oz.
Europe's main stock gauge struggled to get out of a tight range in trading, dogged by a deepening U.S.-China trade spat. The Stoxx Europe 600 finished the day 0.1% higher at 378.73, after Monday's tiny gain of 0.1%. Germany's DAX 30 closed 0.5% higher at 12,157.67, while France's CAC 40 added 0.3% to 5,363.79. The U.K.'s FTSE 100 ended the session little changed in negative territory at 7,300.23.
Asian stocks edged up despite the Chinese commerce ministry's threat of retaliation following President Trump's announcement that he would impose new levies on about $200 billion in Chinese goods. China-exposed indexes shrugged off early pressure in Asia Pacific trading. Hong Kong's Hang Seng closed 0.6% higher, with the Shanghai Composite Index 1.8% higher and the tech-heavy Shenzhen A Share up 1.7%. Investors reacted with cautious optimism to news late Monday that Washington is to impose further tariffs on Beijing. China's commerce ministry said that it "has no choice but to undertake synchronous retaliation" to defend its interests, after the White House released details of the 10% tax set to be imposed on a range of Chinese imports including luggage and seafood on Sept. 24. Taiwan's tech-heavy Taiex index underperformed most other Asia-Pacific indexes and after the Nasdaq Composite on Monday suffered its heaviest one-day loss since July on Monday.
Australian stocks eased in the afternoon, leaving the market among the weaker performers in Asia Pacific, while some others found footing. The S&P/ASX 200 declined 0.4% to 6161.5, reversing nearly half of its gains in the past two sessions. The energy, health-care and consumer-discretionary sectors each dropped more than 1%. But financials eased just 0.1%.
Base metal prices were mostly up overnight on the London Metal Exchange. Larger gains were seen in the 3-month copper contract that appreciated 2.4% to 6,064/t. Nickel advanced 1.3% while zinc gained 1.2%. Tin edged lower by 0.1% to close at 19,020/t
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