World Economy

World Stocks Slip as Trade Fears Set In

Technology stocks led a slide in US stocks.Technology stocks led a slide in US stocks.

World markets slipped on Monday as steep losses by US technology stocks and a weakening Chinese yuan shook confidence in overall growth.

Germany’s DAX fell 0.3% in early trading to 12,824.32 while France’s CAC 40 was down 0.4% at 5,490.90. Britain’s FTSE 100 dropped 0.2% to 7,683.99. Futures pointed to small losses on Wall Street, with the contract for Dow futures down 0.1% at 25,400.00 and S&P 500 futures also 0.1% lower at 2,813.90, AP reported.

Japan’s Nikkei 225 index dropped 0.7% to 22,544.84 and South Korea’s Kospi edged 0.1% lower to 2,293. Shanghai Composite index slipped 0.2% to 2,869.05 and Hong Kong’s Hang Seng index lost 0.3% to 28,733.13. Australia’s S&P ASX 200 gave up 0.4% to 6,278.40. Shares gained in Indonesia but were lower in Taiwan and Singapore.

Technology stocks led a slide in US stocks on Friday, adding to the market’s losses from another tech-driven sell-off a day earlier. On Friday, Twitter announced that its monthly users declined in the second quarter, causing its stock to plummet 20.5% to $34.12. It was the company’s second-biggest loss since going public in 2013.

Snap, the company behind the Snapchat messaging app, slid 4% to $12.83. Facebook shares gave up 0.8% to $174.89 a day after the social media giant led a slide in technology stocks that snapped the S&P 500’s three-day winning streak. bucked the trend, adding 0.5% to $1,817.27 after the online retailer reported its biggest profit ever as its advertising and cloud computing businesses kept growing.

“The (Chinese) renminbi is weak, reflecting the wider trend despite Trump and (European Commission President Jean-Claude) Juncker slapping each other on the back” and agreeing to hold off on new tariffs, said Vishnu Varathan, head of economics and strategy at Mizuho Bank. “Investors are realizing that the main trade risks lie between the US and China,” he added. The renminbi, or yuan, has been skidding since February, mostly because of slower economic growth in China and rising interest rates in the US.

Meanwhile, benchmark US crude rose 77 cents to $69.46 per barrel in electronic trading on the New York Mercantile Exchange. It lost 92 cents to settle at $68.69 per barrel on Friday. Brent crude, used to price international oils, added 36 cents to $75.12.

Add new comment

Read our comment policy before posting your viewpoints