Published: Mon, July 23, 2018
Finance | By Cynthia Curry

Dollar Recovers After Trump Comments

Dollar Recovers After Trump Comments

Signs that the Bank of Japan could scale back its monetary stimulus faster than expected sent tremors through bond markets on Monday, while European stocks slid as threats of further US tariffs on China drained risk appetite.

Short-term bond yields inched higher. The Nasdaq composite dipped 0.4 per cent to close at 7,825.30.

Asian stock markets were already edgy after Wall Street shares declined overnight amid the latest flare up in trade tensions, with the Dow shedding 0.53 percent and the S&P 500 declining 0.39 percent. Emefiele said the three-year deal would help increase trade and reduce pressure on the naira-dollar exchange rate by weaning Nigerian importers off the greenback.

The biggest fallers today have been the automakers with Volkswagen and BMW sharply lower, but the losses have also pulled in BASF, Siemens as well as Deutsche Bank, while on the FTSE100 the worst fallers have been in basic resources and industrials with CRH, Melrose and BHP Billiton all near the bottom of the index. The yuan "will be more stable, as the U.S. could interpret further depreciation as a form of retaliation", they said, sticking with a three-month forecast of 6.7 per dollar. The stock climbed 1.8 percent to $106.31.

Shoe maker Skechers plunged after its estimates for the third quarter fell far short of analyst expectations. US stocks sank in early trading before rebounding. The stock sank 21 percent to $26.29.

Benchmark 10-year US notes last fell 12/32 in price to yield 2.8894 percent, from 2.847 percent late on Thursday. Chinese exports would also be relatively cheaper, possibly balancing out suggested increases in tariffs by the Trump Administration.

China hit back dollar for dollar and accused the United States of starting the "largest trade war in economic history".

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With trade tensions rising, so is the pushback from American business that fear potentially devastating consequences, not only from China but also from Europe, Canada and other countries in Asia.

AUTO TARIFFS REJECTED: The US Commerce Department sought feedback on President Donald Trump's plans to consider taxing auto imports on Thursday. Representatives of the auto industry asked Congress to oppose that move on Thursday.

YUAN DECLINES: The People's Bank of China weakened the country's currency against the dollar on Friday. China's strong economic growth means that the domestic economy retains strength while a low Yuan caused more by Trump than anyone else, actually works to China's favour in terms of exports - particularly where the large USA market is concerned.

New Mexico Farm and Livestock Bureau President Craig Ogden said retaliatory Chinese tariffs on USA pecans and new tariffs from Mexico on US cheese products are likely to hurt producers in New Mexico.

In late NY trading, the euro was up to $1.1725 from $1.1644 in the previous session, and the British pound increased to $1.3135 from $1.3015 in the previous session. The yield on the 2-year Treasury note rose to 2.60 percent from 2.59 percent.

Brent crude pared an early 0.9 percent gain to be up 0.2 percent by 1145 GMT at $72.69 per barrel. The Chinese central bank implemented the sharpest one-day lowering of the trading range for the yuan in two years. Silver gained 1 percent to $15.55 an ounce. That was a jump of 0.6 percent from 10,864.54 on July 13.

Germany's DAX lost 1 percent and France's CAC 40 slid 0.3 percent.

No Confidence motion debate: Rahul Gandhi's wink says it all
Soon after the government won the no-confidence motion, PM Modi said that the NDA has the confidence of 125 crore people. Continuing to tease his opponents, Gandhi said, "even BJP MPs, including an Akali Dal woman leader, admired my speech ".

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