Hilal Sarı / Istanbul, July 2 (DHA) – US Commerce Secretary Wilbur Ross said it was “too premature\" to say whether President Donald Trump\'s auto tariffs will come to pass, after European Union reportedly set to threaten US back with 300 billion dollars of retaliatory measures. Indices in Wall Street opened lower amid ongoing trade war concerns.
Reports regarding US preparing to withdraw from World Trade Organisation, political tensions in Germany between Chancellor Angela Merkel and interior minister and Christian Socaial Union Horst Seehofer after he intended to resign and weak Manufacturing PMI data from Euro Zone economies indices in Asia closed lower, European indices sharply lower too.
ISM Manufacturing Index unexpectedly rose to 60.2 with an increase of 1.5 percentage points from the May reading of 58.7 percent.
WALL STREET – Amid Trump’s trade war rhetoric and trade concerns, Wall Street indices opened lower in the first week day of the third quarter.
- Dow Jones fell by 0.78,
- S&P 500 fell by 0.50,
- Nasdaq fell by 0.35 after the opening gong.
EUROZONE – Manufacturing PMI data from Eurozone economies signalled a weaker manufacturing growth in June. Manufacturing PMI for Euro Zone and Germany fell to 18-month-low, France Manufacturing PMI also fell to 16-month low. Whereas Italy Manufacturing PMI indicated strong manufacturing growth by rising to 53.3 from 52.7.
European Indices fell sharp amid politics and trade concerns;
- DAX fell by 0.35
- FTSE fell by 0.87
- CAC fell by 0.82
- FTSE MIB fell by 0.76 percent.
In parallel with improvements;
- MSCI Asia Index (minus Japan) rose by 0.62 percent, year-to-date revenue from the index rose to 16.45 percent.
- DOLLAR INDEX rose by 0.52 percent up to 95.07. Index moved between 94.53 and 95.14 during the day.
- EURO/DOLLAR declined by 0.68 percent down to 1.1607. Euro/dollar reached 1.1693 highest and 1.1597 lowest intraday.
- US bonds rose; 10 year US bond yield rose to 2.855 percent, yield for 30 year US-bond rose to 2.986 percent and 2 year US-bond yield rose to 2.54 percent.
- DOLLAR/YEN, rose by 0.13 percent to 110.84 as dollar appreciated against yen.
- POUND/DOLLAR declined by 0.77 down to 1.3108.
- OIL prices sink as Saudi and Russian output rises. WTI declined by 0.49 percent down to 73.79 dollars; Brent declined by 1.54 percent down to 78.01 dollars.