trending Market Intelligence /marketintelligence/en/news-insights/trending/enkqnh3commdersvzvbhbq2 content esgSubNav
In This List

Asian, European stocks diverge as Trump ramps up trade threats


Street Talk | Episode 126: Hunting the bears, making the bull case for CRE


Investment Banking Essentials May 15


Panel Discussion: Modernization Initiatives Advancing the U.S. Capital Market


Technology & Automation Insights: Elevating KYC and onboarding efficiency

Asian, European stocks diverge as Trump ramps up trade threats

? U.S.-China trade tensions intensify.

? U.K. GDP growth beats expectations.

? Sweden faces political deadlock.

? S&P 500 set to open higher.

SNL Image

Global stocks were mixed as U.S. President Donald Trump ramped up his trade threats against China.

The Shanghai SE Composite index lost 1.21% and Hong Kong's Hang Seng tumbled 1.33% after Trump threatened tariffs on another $267 billion worth of imports from China, while markets await a formal announcement on whether the White House will push through with previously proposed levies targeting $200 billion in Chinese goods. China recorded a trade surplus with the U.S. of $31.05 billion in August, up from $28.09 billion in July.

Shares in Apple Inc. suppliers came under pressure after the U.S. technology giant said Trump's tariffs would impact a wide range of its products, and as the president urged the company to make its products at home to avoid price increases resulting from tariffs. AAC Technologies Holdings Inc.'s shares plunged 3.63% and Sunny Optical Technology (Group) Co. Ltd.'s shares lost 4.28% in Hong Kong, while Hon Hai Precision Industry Co. Ltd.'s shares closed 3.35% lower in Taiwan.

European stocks, meanwhile, recouped losses earlier in the day, with Germany's DAX up 0.31% and France's CAC 40 rising 0.43% as of 6:41 a.m. ET. The FTSE 100 edged 0.26% higher and the pound rose 0.09% against the dollar after Britain's July GDP growth beat consensus estimates.

Despite the strong data, the outlook for investment in the U.K. remains poor given the ongoing uncertainty over the country's future trading relationships, noted James Knightley, chief international economist at ING.

The euro rose 0.19% against the dollar, while Sweden's krona gained 0.13%. Yesterday's general elections led to a potential political deadlock, with neither of Sweden's two main parliamentary blocs securing enough votes to form a majority government. Annual economic growth in Turkey slowed to 5.2% in the second quarter from 7.3% in the previous quarter, dragging the lira down 0.81%.

Ten-year Treasury yields were broadly steady at 2.940% as annual hourly wages in the U.S. grew more than expected in August. German Bunds fell as 10-year yields advanced nearly 2 basis points to 0.407%, while those on Italian government bonds dropped 11 basis points to 2.932%.

Futures point to a higher opening for Wall Street. Shares in New York-listed Alibaba Group Holding Ltd. are down more than 1% in pre-market trading after the Chinese tech conglomerate announced a succession plan that will see CEO Daniel Zhang take over from co-founder Jack Ma a year from now.

Brent crude oil climbed 0.72% to $77.38 per barrel on the ICE Futures Exchange. Gold slipped 0.25% to $1,193.90 per ounce.

More from S&P Global Market Intelligence:

Yield curve recession signals get a new reading

Manufacturers race to slash solar costs amid China market turmoil

QEM planning IPO on unique vanadium-oil play in Queensland

Institutions' wariness of US oil driller stocks went beyond Permian Basin in Q2

Warner Bros. set to continue terrifying reign at box office with 'The Nun'

Iflix content chief does not believe in Netflix's pan-regional approach in Asia

Capitol Checkup: 'Medicare for all' gets Obama boost; Azar promotes PBM power

Cannabis companies double down on research, clinical trials in expanding field

The day ahead:

11:30 a.m. ET — U.S. Fed's Raphael Bostic speaks

12:30 p.m. ET — TD Ameritrade IMX

3 p.m. ET — U.S. consumer credit (Econoday consensus: $14.0 billion monthly)