Asia stocks looked set to drop as China hit back against the Trump administration’s latest tariffs and tensions ratcheted up between the U.S. and Russia. Oil tumbled.
Futures pointed to a lower open for stocks in Hong Kong, Japan and China. The S&P 500 Index was little changed, remaining about half a percentage point shy of its all-time record. Treasuries edged up as investors scooped up a record $26 billion 10-year auction. The ruble slumped as the U.S. announced new sanctions on Russia. The kiwi declined after the New Zealand central bank pushed out its forecast for a rate increase by a year as the outlook for economic growth weakens.
China said it will impose 25 percent tariffs on an additional $16 billion worth of imports from the U.S. from Aug. 23, matching Washington’s latest move in the trade war. The U.S. announced new sanctions on Russia, saying it’s made a final determination that Moscow was responsible for the March 4 nerve-agent attack on former double agent Sergei Skripal in the U.K.
Elsewhere, Turkey’s lira nudged higher as a Turkish delegation met with U.S. State Department and Treasury officials in Washington Wednesday, as both sides sought a way out of an escalating feud. Crude tumbled to a nearly seven-week low as the escalating trade dispute between the world’s biggest economies overshadowed a decline in U.S. crude stockpiles. Bitcoin dropped, leading a sell-off in digital coins of all sizes.
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Here are some key events coming up this week:
- Samsung Electronics is set to unveil its next Galaxy Note smartphone on Thursday.
- U.S. consumer prices probably rose in July from June, consistent with a pickup in inflation that’s projected to keep the Federal Reserve on a path of gradual interest-rate increases, economists forecast before Friday’s release.
These are the main moves in markets:
- Futures on Japan’s Nikkei 225 fell 0.4 percent in Singapore.
- Futures on the FTSE China A50 Index lost 0.1 percent.
- Futures on Hong Kong’s Hang Seng Index declined 0.2 percent.
- The S&P 500 slipped less than one point to 2,857.70.
- The yen held at 110.92 per dollar.
- The offshore yuan traded flat at 6.8254 per dollar.
- The euro bought $1.1612.
- The kiwi fell 0.6 percent to 67.06 U.S. cents.
- The yield on 10-year Treasuries fell one basis point to 2.96 percent.
- The Bloomberg Commodity Index retreated 0.4 percent.
- Gold futures were little changed at $1,213.97 an ounce.
- West Texas Intermediate crude fell 3.2 percent to $66.94 a barrel.