Stocks Lower After Trump Tariffs Bring Trader Wars Closer

March 2, 2018 Share Print 0

U.S. stock futures pointed to a fourth straight daily fall on Friday, as investors fretted President Donald Trump had launched a global trade war with his promise to impose import tariffs on steel and aluminum.

Europe promised to act firmly and China said it would defend its interests appropriately if Trump followed through with his pledge to place a 25 percent tax on steel and 10 percent on aluminum next week.

Trump’s announcement drove a third straight 1 percent decline for the Dow and S&P 500 on Thursday, putting the Dow into negative territory for the year, and futures pointed to almost a 1 percent fall at opening.

“The announcement has also come at a time when investor sentiment is already fragile,” Oanda Senior Market Analyst Craig Erlam said in a note.

“For someone so obsessed with stock market performance, he’s taking a big gamble with these tariff’s, the benefits of which are questionable.”

via Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.