U.S. Stock Futures Fall as Trade-War Escalation Fuels Worries
The Dow Jones Industrial average recorded its sixth weekly loss, the longest slump since 2011.
(Bloomberg) -- U.S. stock-index futures extended their losses after further escalation in trade tensions fueled investors’ angst, and China’s government blamed America for the latest collapse in trade talks.
Contracts on the S&P 500 Index fell as much as 0.8% after Beijing released a white paper on Sunday saying the escalating trade war between the world’s two largest economies hasn’t “made America great again” -- appropriating President Donald Trump’s 2016 campaign slogan. Futures on the Nasdaq 100 and the Dow Jones Industrial Average both declined as much as 0.9%.
In Europe, the Stoxx Europe 600 Index slid as much as 0.9% to its lowest intraday level since Feb. 15, led by the oil & gas and auto sectors. The index extended its losses after it ended May with a 5.7% slump, recording its worst month since January 2016. Infineon Technologies retreated 5.4% after it agreed to buy Cypress Semiconductor, while oil stocks hit their lowest level since January after crude oil futures flirted with bear market territory.
The S&P 500 sank 1.3% on Friday after Trump threatened to place escalating tariffs on Mexico, as U.S. stocks capped their first monthly decline since last December’s market rout. The Dow recorded its sixth straight weekly loss, the longest slump since 2011.
China contends that Washington’s trade moves have done serious harm to the U.S. economy by increasing production costs, causing price hikes, damaging growth and people’s livelihoods and creating barriers to U.S. exports to China.
--With assistance from Michael Msika.
To contact the reporter on this story: Jackie Edwards in Sydney at jedwards160@bloomberg.net
To contact the editors responsible for this story: Tom Redmond at tredmond3@bloomberg.net, Naoto Hosoda, Tim Smith
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