Itâs looking like stocks wonât see a fifth up session in a row, thanks to the new round of U.S. tariffs targeting China.
A global selloff is underway for equities, with Shanghaiâs benchmark
closing 1.8% lower, after the Trump administration late yesterday unveiled 10% tariffs on a further $200 billion in Chinese goods. Beijing has promised retaliation and blasted the White House for displaying a âloss of reason.â
What to make of it all?
The U.S.-China fight isnât a trade war yet, and investors looking for red flags should track CEOs and shoppers, according Richard Turnill, BlackRockâs global chief investment strategist. He provides our call of the day.
âAt this stage, if you look at the numbers â so an additional $200 billion of tariffs, 10% on those â that adds up to about 0.1% of U.S. GDP,â Turnill said in a Bloomberg Radio interview.
âAs yet, the measures weâve seen implemented donât constitute a trade war and donât have a material impact on growth.â
So when might he start to get rattled?
âWhat investors need to focus on is at what point do these continued trade tensions start to impact corporate confidence and consumer confidence in the economy?â Turnill said.
âWeâve seen some signs of that, with some CEOs coming out and talking about deferring investment â warning the administration against further tensions. Those signals, I think, would be more worrying and indicate this is something more than simple rising trade tensions, which should be bought into.â
The strategist said BlackRock, the worldâs largest asset manager, is bullish on U.S. stocks, but recommends taking some profits on European and Japanese equities and being selective overall, given that the pattern of tit-for-tat tariffs is âshowing no real sign of coming to an end.â
Go here to listen to the full audio clip featuring Turnill. He also has given his take on markets via the chart shown below that features smiley and frowny faces.
Read more: Trump pushes U.S. closer to once-unthinkable trade war
And see: How will investors know if thereâs a full-blown trade war?
Key market gauges
Futures for the Dow
Â , S&P 500
are falling, after the Dow
Â , S&P
and Nasdaq Composite
all scored their fourth up session in a row yesterday.
and Asia have been seas of red. Oil
are lower, as the dollar index
is changing hands around the $6,400 mark.
See the Market Snapshot column for the latest action.
âGermany, as far as Iâm concerned, is captive of Russia because it is getting so much of its energy from Russia.â âPresident Donald Trump talked tough at a breakfast today in Belgium as a two-day NATO summit began.
A German official offered a dismissive response to the presidentâs criticism. Meanwhile, the U.S. embassy in London is telling Americans in that city to âkeep a low profileâ as protests are planned when Trump visits the U.K. later this week.
Read: Trump heads to NATO gathering, Putin summit with allies on edge
And see: President says âup to the peopleâ whether Theresa May should be replaced
The latest U.S. salvo in the trade fight with China has whacked prices for a range of commodities.
have erased a recent gain, as shown in the chart above. China can increase its soybean imports from other countries to reduce its reliance on U.S. producers, a key Chinese official reportedly said today.
Donât miss: Trade dispute opens âwindow of opportunityâ for soybean investors
Republican Sen. Orrin Hatch has criticized the new round of tariffs as ârecklessâ and ânot a targeted approach,â while storied investor Mark Mobius says Trump is ânot going to give inâ and âwe are in uncharted waters.â
Go here for the lengthy list of Chinese goods that the U.S. government has targeted with its latest move.
See: Stock-market bulls look for earnings to trump trade-war fears
plans to reorganize into three units, and the drugmaker says it will delay some price hikes after talking with Trump.
Details are out for that higher Fox
bid for Sky
that had been expected, and Fastenal
posted an earnings beat.
In other economic news, a reading on producer prices is due before the opening bell, wholesale inventories come after the open, and New York Fed President John Williams is due to speak after the close.
Check out: MarketWatchâs Economic Calendar
The Bank of Canada is expected to raise rates, but analysts say it wonât help the loonie
Uber HR executive Liane Hornsey reportedly has resigned following allegations that she dismissed complaints about racial discrimination.
Itâs 7/11 Day again and that means free Slurpees.
Hereâs why people should stop live-tweeting strangers flirting.
Seth Klarmanâs coveted âMargin of Safetyâ book was briefly on sale for $10.
An irate sell-side analyst appears to have chosen a memorable way to resign.
HHS boss says his agency is showing âgenerosityâ to detained migrant kids.
Pogba salutes the rescued Thai soccer team after Franceâs World Cup win…
This victory goes to the heroes of the day, well done boys, you are so strong ðð¾ #thaicaverescue #chiangrai pic.twitter.com/05wysCSuVy
— Paul Pogba (@paulpogba) July 10, 2018
…while England fans get ready by celebrating #WaistcoatWednesday:
Same bear, new look #WaistcoatWednesday
All the best to Gareth and the boys @England#ENG #ENGCRO #ItsComingHome pic.twitter.com/qLocGukKJa
— BBC Children in Need (@BBCCiN) July 11, 2018
Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. Be sure to check the Need to Know item. The emailed version will be sent out at about 7:30 a.m. Eastern.
Or Follow MarketWatch on Twitter or Facebook.
And sign up here to get the Friday email highlighting 10 of the best MarketWatch articles of the week.