por admin » Mar Dic 03, 2019 7:42 am
Dow futures drop 100 points after Trump suggests he may wait to strike a China trade deal
PUBLISHED 4 HOURS AGO UPDATED 5 MINS AGO
Thomas Franck
@tomwfranck
Fred Imbert
@foimbert
CNBC.COM
Markets point to a lower open as trade tensions weigh on Wall Street
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Aug. 21, 2017.
U.S. stock index futures dropped on Tuesday after President Donald Trump suggested he may want to delay a trade deal with China until after the 2020 presidential election.
Around 7:28 a.m. ET, Dow Jones Industrial Average futures indicated a drop of 100 points at the open, after trading slightly higher earlier in the session. Futures on the S&P 500 and Nasdaq also pulled back.
Caterpillar and Intel shares slid 0.8% each in the premarket. Apple lost 0.5%.
"In some ways, I like the idea of waiting until after the election for the China deal, but they want to make a deal now and we will see whether or not the deal is going to be right," Trump told reporters earlier on Tuesday. When asked if he had a deal deadline, he added: "I have no deadline, no ... In some ways, I think it is better to wait until after the election if you want to know the truth."
Tuesday's losses would add to a steep decline from the previous session. The S&P 500 dropped 0.9% on Monday, its worst one-day performance since Oct. 8, while the Dow lost nearly 270 points. The Nasdaq closed down 1% on Monday. The previous session's pullback was sparked by disappointing manufacturing data as well as renewed trade uncertainty between the U.S. and two South American partners.
Trump announced Monday the U.S. will restore steel and aluminum tariffs on imports from Brazil and Argentina. He also suggested the move was necessary because Brazil and Argentina had been "presiding over a massive devaluation of their currencies." However, in recent months, both countries have been seeking to strengthen their respective currencies against the dollar.
The South American trade tariffs have rekindled broader concerns about a protracted dispute between the U.S. and China, with investors monitoring the prospect of a limited agreement. Washington and Beijing have imposed tariffs on billions of dollars' worth of one another's goods since the start of 2018, battering financial markets and souring business and consumer sentiment.
Ahead of his trip to London, Trump said he was "very happy" the world's two largest economies were holding talks to try to secure a so-called phase one agreement. The U.S. president has joined other world leaders in the U.K.'s capital city to mark the 70th anniversary of NATO.
On the data front, the latest quarterly financial report will be released at 10 a.m. ET, with light vehicle sales figures for November set to follow slightly later in the session.