Dollar weakened After Powell’s Jackson Hole speech
US stock indexes plummeted on Friday as President Trump announced an additional duty on some $550 billion of Chinese goods after Beijing unveiled new 5% to 10% tariffs on another $75 billion worth of US goods, including autos. The S&P 500 tumbled 2.6% to 2847.11, falling 1.4% for the week. The Dow Jones Industrial Average lost 2.4% to 25628.90. The Nasdaq dropped 3% to 7751.77. The dollar weakening accelerated after Federal Reserve Chairman Powell said at annual central banking symposium in Jackson Hole, Wyoming the Fed will do “what monetary policy can do to sustain the expansion”. The live dollar index data, a measure of the dollar’s strength against a basket of six rival currencies, fell 0.6% to 97.65 but is higher currently. Stock index futures point to higher market openings today.
DAX 30 Leads European Index Movement
European stocks retreat accelerated on Friday after China announced it imposes tariffs on $75 billion of US goods. EUR/USD joined GBP/USD’s decelerating climb on Friday with both pairs reversing their directions currently. The Stoxx Europe 600 Index lost 0.8% Friday. The DAX 30 dropped 1.2% to 11611.51. France’s CAC 40 tumbled 1.1% and UK’s FTSE 100 slid 0.5% to 7094.98.
Nikkei Leads Asian Indexes Losses
Asian stock indices are in deep red today after President Trump called for US companies to start moving out of China and announced new tariffs on Chinese goods after Beijing unveiled new retaliatory tariffs last Friday. Nikkei fell 2.2% to 20261.04 despite reversal of USD/JPY ‘s climb against the dollar. China’s markets are falling: the Shanghai Composite Index is down 1.2% and Hong Kong’s Hang Seng Index is 2.1% lower. Australia’s ASX All Ordinaries index turned 1.3% lower as the Australian dollar reversed its slide against the greenback.
Brent Down
Brent futures prices are extending losses today on global growth slowing concerns after US-China trade dispute escalation. Prices fell on Friday: Brent for October settlement ended 1.2% lower at $59.34 a barrel Friday.