Markets Business Insider:
US stocks are set to tumble when they open on Monday morning as traders prepared for the next twist in the US-China trade war.
Asian and European stocks slipped with US futures after the economic implications sank in. Chinese officials pledged to take any “necessary countermeasures” and refused to swallow “bitter fruit” that hurts their interests in the US-China trade war, according to Reuters.
“Investors are again growing worried on what China’s response will be,” said Konstantinos Anthis, head of research at ADSS. “A lengthy standoff will start taking a fresh toll on the domestic and global economies.”
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NY Times:
Markets Fall as Investors Await China Response to Trump
By The New York Times
Global markets traded modestly lower on Monday as investors awaited word of how China would respond to President Trump’s escalation of a trade war.
Chinese stocks finished more than 1 percent lower, while the rest of the region registered similar drops. European markets opened lower. Futures that track Wall Street’s performance indicated that stocks in the United States would open lower too.
China’s currency, the renminbi, weakened against the American dollar.
President Trump on Friday raised tariffs on $200 billion worth of Chinese-made goods. Talks between American and Chinese officials in Washington ended later that day with the two sides still far apart on a number of issues. Markets in the United States fell that day then recovered some ground on the hopes that the trade war could soon end without too much disruption.
The timing of that end remains uncertain. China reiterated its defiant stance on Monday, as Geng Shuang, a spokesman for China’s Foreign Ministry, reiterated that Beijing would not bend to foreign pressure and a response would come. American officials on Monday were set to release details of their higher tariffs, which could give China the information it needs to respond.
In China, the Shanghai Composite Index fell 1.2 percent, while the Shenzhen Composite Index fell 1.1 percent. Hong Kong markets were closed for a holiday.
Japanese shares fell more modestly, with the Nikkei 225 index losing 0.7 percent.
In South Korea, the Kospi index fell 1.4 percent, while Taiwan’s Taiex index fell by a similar amount.
Both the CAC 40 index in France and the Dax in Germany were 0.5 percent lower in early trading, while the FTSE 100 index in London was flat.
and if that isn’t enough to cause jitters, there’s this from BBC:
Two Saudi oil tankers ‘sabotaged’ in the Gulf
Two Saudi oil tankers were the targets of a “sabotage attack” off the coast of the United Arab Emirates on Sunday, Saudi Arabia’s energy minister says.
The incident near Fujairah port, in the Gulf just outside the Strait of Hormuz, caused “significant damage” to the ships, according to Khalid al-Falih.
The UAE said four ships were targeted, but that there were no casualties.
Iran, which borders the strait, called the incident “worrisome and dreadful” and called for a full investigation.
Tensions are high in the region, through which about a fifth of oil that is consumed globally passes.
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as old trail friend CBob would say “Buckle up — it’s going to be a bumpy ride” today
adding to that “sabotage” story:
now, who could be behind that “conspiracy orchestrated by ill-wishers” and benefit from such chaos?
bff vlad perchance?
also will some of this lead to a logjam and interference with uss Lincoln’s deployment via disabling more tankers? stay tuned.
If this was the eighties, we would worry about a disruption in oil supplies but we aren’t as dependent. So I say help Iran and the Saudi’s get their nukes then they along with the Israelis can blow each other to hell. It is time we got out of that region anyway.
As to the trade war? Kamala Harris just came out against NAFTA so Trump and the Democrats are on the same page. Which is why Trump wins.
Jack
The Dow futures are off 500 pts, of course 500 pts ain’t what it used to be but still a healthy 1.8% drop.
Jack
As Buffett would say in the 70s and 80s and … “Markets will fluctuate.” as he held on to his well chosen assets.
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True, and traders panic or bet on panic.
Now if we were to have another black Monday, down 22%, which would be a 5000 pt drop in the Dow that might get somebody’s attention.
Jack
The Chinese now respond with retaliatory tariffs in combination with a “made in China” campaign for their citizens. Top it off with our exit from the trade agreements that allows all of our former allies Trump pissed off to rush in to gobble up our former share of that market. We will be lucky to get rid of Trump without getting a new 30s level depression.
Aw Doris Day has passed away at 97.
So how is this all affecting me? Went to Walmart the other day to buy some work jeans. The price was up about $2 on what had been a $11 product. Not a hardship but a healthy price increase and if everything I buy goes up 20% that is money I can’t spend on other things, a good number of those things have more of an impact on the local economy than Walmart. Like the weekly night out at a good restaurant.
Jack
Of course this could be a boon for our Nafta partners, take all the parts do a minor final assembly stamp the made in Mexico/Canada and ship. Then Jax takes his tugs and barges down to Mexico loads them up and brings them back, off loads them in Houston, rinse and repeat. So it is good for Jax and Texas too! So Jax, if you are listening, better buy some more equipment. Or better yet just rent it, given Trumps attention span/ weather vane approach to governing this might not be a long term opportunity.
Jack
My little portfolio is down 3% so far.
Jamie – this cold and rainy day became more sad with news of Doris Day passing. My father-in-law “fell in love” with her during WWII as he crossed North Africa, Sicily, Anzio, France and Germany. No matter how her movies went, he watched them, this is after her singing career changed to actor career. I have several 78’s of her and the Les Brown band and somewhere an album or two. I know what I will be listening to for a while. I may even break down and watch one of her rom-com flicks.
https://youtu.be/Im4-3GLP-Xw
Les Brown and his band had a BIG hit in the mid-1940’s with “Sentimental Journey” which featured Cincinnati’s Doris Day on vocal solo….beginning Doris’ legendary showbiz journey that lasted ever since! Enjoy this touching 1985 reunion performance by Doris, Les and some of the original band members as they recreate their smash hit!
Jamie makes a good point, and I’m really a bit surprised the Kamala has come out against NAFTA. I have been and continue to be an anti-protectionist for exactly the reasons Jamie notes – that trade barriers are responded to in kind more often than not. In the case of Canada and Mexico, WTF is SFB thinking? (And yes, I know he really isn’t, thinking not being high on his list of things to do.) This terrific economy he likes to brag about – perhaps the best in our country’s history (BTW, BS) is based on both import and export trade worldwide. So our soybean farmers are going to see South American Soybeans supplanting the US share of the Chinese market they used to enjoy. That, in a rational world would get their attention and focus blame on the orange guy who caused the retaliatory actions by China. Hide and watch – they will not blame him because they instead will buy his BS explanations.
I did watch Kamala Harris’ interview with Jake Tapper on CNN yesterday morning ( or was it afternnoon?). I heard her say that she wouldn’t have signed onto NAFTA. My take…. at the time, maybe she would have and maybe she wouldn’t have. But right now… she thinks it’s politically expedient to say she wouldn’t have. That’s the advantage of someone who didn’t have to vote thumbs up or down for things and is now running for prez.
I do like her. And wouldn’t it be a punch in the gut to trump if he got beat by a woman and a black one to boot. But right now it’s early and everything is speculation. Jack… I do hope you are wrong. I’m not in favor of being royally fucked.
If I’d bought that stock on margin, I’d be out on the roof ledge, if I were a roof ledge type guy, which I am not, even if I could still get up on the damned ledge.
Anywhat, so I’ll just sit around until dinner with Sweetie cheers me up again. Que sera, sera.
Now, all you pessimists have made look at the past 18-months of the S&P500. Looks as if we’re coming off a triple high. I would be going long puts in anticipation of a 20-pct drop. But, since I’m trying to be a stress-free retiree, I’m comfortable being 90-pct in cash.
Another day like today and if the Dow recovers, SFB will be able to hail the Dow rising past 25,000 for the third year in a row. I wonder if he’ll fall back onto his old assertions that the Dow isn’t a good measure of the economy?
Looking at that stock market .. we need some pure joy. My favorite Doris Day songs from Love Me or Leave Me as Ruth Etting
Since Ten Cents a Dance is a great song, if you aren’t watching Verdon/Fosse, you should be. Here is “Hey Big Spender” from Sweet Charity.
Happiness is finishing making a couple gallons of kimchi. Two days to burbble and then packaging. First taste in two weeks. Life is good.
The day has gone like the last day or many days. It is like tomorrow and the next many days. Until SFB is impeached and jailed we will live in hell.
Washington Post will no longer allow you to post that SFB is a Russian agent. Looks like they are now following the rules of make the dictator ruler of your posts.
Ms Bronc, will WaPo allow us to write that trump is a saudi agent ? Or, alternatively, an agent of Mecca ? Can we still comment on his ‘harem ?’ His ‘oriental style’ of luxurious despotism ?
You’d think ‘trump is a russian agent’ would be less onerous.
P’raps, I should shoulda written, luxurious ‘oriental style’ despotism.
I’d call the trumpco nation a despotate, but we still have a few shreds of our republican Constitution left. Obviously, it is a enemy sheikhdom operating illegally.
How about “Gold Plated Tower Trash”?
We shall have to test WaPo’s censor algorithms.
Step 1- I posted:
Then an I posted:
I think the censor algorithms allow it if you refer to the orange clown as something other than his actual name you can punk WaPo
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