Monday September 2nd

2-09-2019

European stocks cautiously higher as new trade tariffs take effect; Brexit and Italy in focus

The U.S. stock and bonds markets are closed for Labor Day. European stocks traded higher Monday morning as China and the U.S. kicked off a new round of trade tariffs on one another’s imports, despite signs that talks could resume in September. The pan-European Stoxx 600 climbed 0.3% after the opening bell, basic resources jumping 0.6% to lead gains as all sectors and major bourses traded in positive territory. The latest round of tariffs sees the U.S. imposing 15% tariffs on a variety of Chinese goods, including footwear, smart watches and flat-panel televisions, while China targeted U.S. crude with 5% duties. Stocks in Asia were mixed on Monday as the latest round of U.S. and China tariffs kicked into effect over the weekend, while investors digested better-than-expected Chinese manufacturing data. Mainland Chinese shares jumped on the day, as the Shanghai composite added 1.31% to around 2,924.11 and the Shenzhen component was up 2.18% to 9,569.47. The Shenzhen composite also gained 2.259% to approximately 1,614.92. Over in Hong Kong, however, the Hang Seng index slipped 0.64%, as of its final hour of trading. Elsewhere, the Nikkei 225 in Japan shed 0.41% to close at 20,620.19, while the Topix index also fell 0.44% to finish its trading day at 1,505.21. Over in South Korea, the Kospi ended its trading day in Seoul fractionally higher at 1,969.19. Oil prices weakened on Monday after new tariffs imposed by the United States and China came into force, raising concerns about a further hit to global growth and demand for crude. Brent crude slipped 22 cents, or 0.4%, to $59.03 a barrel by 0620 GMT, while U.S. oil was down 2 cents at $55.083 at barrel. Gold edged slightly higher on Monday after the United States and China imposed new tariffs on each others’ goods but a firmer dollar limited the precious metal’s upside. Washington began imposing 15% tariffs on a variety of Chinese goods on Sunday, including footwear, smart watches and flat-panel televisions, as Beijing began imposing new duties on U.S. crude. However, U.S. President Donald Trump said both sides would still meet for talks later this month. Spot gold was up 0.2% at $1,522.17 per ounce as of 0920 GMT, having fallen to a one-week low at $1,517.11 in the previous session. U.S. gold futures were up 0.1% at $1,531 an ounce.