Wall Street gains wiped out by fears of trade war

Muriel Colon
November 1, 2018

USA markets sustained sharp losses late in the day on reports that Trump is planning new tariffs on all remaining imports from China if the two sides don't make progress in trade talks next month.

The list would apply to the imports from China that aren't already covered by previous rounds of tariffs-which may be $257 billion using last year's import figures, according to two of the people.

He said he has 267 billion dollars of new tariffs waiting to go if he can not make a deal with China. Most of those imports are now being charged a 10 percent tariff, which is set to increase to 25 percent at the end of the year.

The trade war between China and the US will not be ending soon.

Tariff "wave" the stock market gains away.

In New York, the Dow Jones industrial average was down 245.39 to 24,442.92. IBM fell 4.1 percent to $119.64.The prospect of reduced barriers to trade helped auto makers on Monday.

The Dow is down 7.7 percent the S&P 500 has fallen 9.4 percent and the Nasdaq has lost 12 percent for October.

Marijuana producers pushed health care stocks higher by 1.4 per cent. Aphria Inc. rose 6.3 per cent, while Aurora Cannabis Inc. and Canopy Growth Corp. increased 2 per cent and 1.5 per cent, respectively.

The reports - all based on a Bloomberg article - say that the United States will place tariffs on the remaining $257 billion of Chinese imports not already subject to tariffs if there are no new developments in the ongoing trade spat. IBM Chairman and CEO Ginni Rometty said the deal will make IBM the world's biggest hybrid cloud provider, meaning it will offer companies a mix of on-site, private and third-party public cloud services.Red Hat soared 45.4 percent to $169.63, reversing its losses from earlier this year.

The S&P 500 Index looked set to extend its rally from a day earlier as more company results rolled in, with General Motors, GlaxoSmithKline and Sprint among those beating expectations. "You have two of the most powerful leaders in the world".

The Stoxx Europe 600 Index surged 1.3 percent to the highest in a week.

US crude fell 1.28 percent to $66.18 per barrel and Brent was last at $76.07, down 1.64 percent. The euro rose to $1.1377 from $1.1372.

USA crude fell 1.06 percent to $66.33 per barrel and Brent was last at $76.30, down 1.34 percent.

Benchmark 10-year U.S. Treasury notes last fell 7/32 in price to yield 3.1132 percent, from 3.087 percent late on Monday.

CURRENCIES: The dollar strengthened to 112.95 yen from 112.37 yen late Monday.

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