Published: Sat, March 03, 2018
Economy | By

Asian Stocks Follow Wall Street Lower as Dollar Rises

Asian Stocks Follow Wall Street Lower as Dollar Rises

"And tariffs could lead to a potential trade war, that's the main thing, and that could be very negative for the economy because other countries could put on tariffs as well".

The Cboe Volatility Index.VIX, the most widely followed barometer of expected near-term volatility of the S&P 500 index .SPX, closed up 1.26 at 19.85, its highest close in a week. The Dow is up 1.25 percent this year. The Dow Jones Industrial Average closed at 25,029.20 for a loss of -380.83 points or -1.50%. It was down as much as 586 points earlier. The S&P 500 added 0.3%, and the Nasdaq Composite advanced 0.6%.

U.S. Steel was up $2.26, or 5.2 per cent, to $45.77, and AK Steel jumped 45 cents, or 6.5 per cent, to $5.50. That means Apple and other big US companies are dependent on customers not only in Peoria but also Paris and Peru. Apple gave up $4.65, or 2.6 per cent, to $173.47 and Pfizer shed $1, or 2.7 per cent, to $35.32.

After a confused day of report and counter report, Trump said the USA would impose tariffs of 25 per cent on steel imports and 10 per cent on imported aluminium next week.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Gold usually rises when fears about inflation are climbing.

With Powell's prepared remarks likely to mirror those he delivered before the House Financial Services Committee on Tuesday, traders are likely to focus on the question-and-answer segment for clues about the outlook for interest rates.

Earlier in the week, Powell helped send Treasury yields jumping and stocks tumbling when he said that he's feeling more optimistic about the economy.

"The members of the S&P 500 has become quite globalized, and one may argue that most of the things that have benefited this bull market have been globalization-related", Michael O'Rourke, JonesTrading chief market strategist, said by phone.


The yield on the 10-year Treasury rose to 2.85 per cent from 2.81 per cent late Thursday. It's still on pace for a loss of 2.5 percent this week, which would be its third decline that severe in the last five weeks.

The company declared a final dividend of 1.74 cents per share.

The EIA Petroleum Status Report showed an increase of 3 million barrels in oil inventory for the week.

Significant weakness was also visible among interest rate-sensitive real estate stocks, as reflected by the 2.2 percent loss posted by the Dow Jones U.S. Real Estate Index. Brent crude, the global standard, lost 94 cents, or 1.5 per cent, to $63.79 a barrel. Gold for April delivery lost $14.20, or 1.1%, to land at $1,318.60 per ounce.

CURRENCIES: The dollar fell to 105.32 Japanese yen from 106.24 yen late Thursday. The euro rose to $1.2305 from $1.2255, and the British pound fell to $1.3759 from $1.3768.

In Europe, France's CAC 40 lost 2.2 per cent, and Germany's DAX fell 2.1 per cent. The FTSE 100 in London dropped 0.8 per cent.

In Asia, Japan's Nikkei 225 plunged 2.5 per cent, the Hang Seng in Hong Kong fell 1.5 per cent and South Korea's Kospi dropped 1 per cent.

Like this: