US stocks open lower as China announces new tariffs

About 15 minutes into trading, the Dow Jones Industrial Average was at 26,149.07, down 0.4 per cent. — AFP pic
About 15 minutes into trading, the Dow Jones Industrial Average was at 26,149.07, down 0.4 per cent. — AFP pic

NEW YORK, Aug 23 — stocks opened lower today after announced another round of tariffs on US goods, the latest escalation in the protracted trade war between the countries.

About 15 minutes into trading, the Dow Jones Industrial Average was at 26,149.07, down 0.4 per cent.

The broad-based S&P 500 also slid 0.5 per cent to 2,909.84, while the tech-rich Nasdaq Composite Index fell 0.6 per cent to 7,944.74.

China’s tariff announcement came just before a widely-anticipated speech by Federal Reserve Chair Jay Powell that is expected to offer clues on the likelihood of further interest rate cuts.



Beijing’s punitive tariffs target US$75 billion (RM314 billion) worth of US imports and will range from five per cent to 10 per cent on 5,078 items, China’s state council tariff office said.

Beijing also announced it will impose a 25 per cent tariff on US autos and a five per cent tariff on auto parts starting December 15.

China had vowed action after President Donald Trump earlier this announced tariffs on US$300 billion in imports, levies that will take effect in September and December.

Powell, meanwhile, is due to address an annual central banker gathering in Jackson Hole, Wyoming. The Fed last month cut interest rates for the first time in more than a decade.

Futures markets expect another rate cut in September, but some regional Fed presidents yesterday expressed reticence about cutting interest rates again so soon.

Among individual companies, cloud computing company Salesforce surged 5.6 per cent as it lifted its full-year revenue forecast after a 22 per cent jump in second-quarter sales to US$4.0 billion.

Hasbro dropped 5.7 per cent after announcing it will acquire Entertainment One for US$4.0 billion in cash, a purchase that includes the “Peppa Pig” and “PJ Masks” brands. — AFP

Source: The Malay Mail Online







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