Graph with stacks of Australian dollars
World stock markets edge higher as U.S.-China trade tariffs kick in
(Updates with early afternoon trading)
By David Randall
NEW YORK, July 6 (Reuters) - World stock markets rose and
the euro climbed to a three-week peak on Friday as the threat of
tariffs by the United States and China on billions of dollars of
trade became a reality, though concerns about the conflict
escalating capped the appetite for risk.
MSCI's measure of world equities markets
rose 0.8 percent to the highest level since June 22 while Asian
stocks climbed nearly half a percent, led by a
rebound in Chinese shares.
Stocks edged higher in Europe, with the pan-European
FTSEurofirst 300 index up 0.2 percent.
U.S. equities marched higher in mid-afternoon trade after
monthly jobs data showing a 213,000 gain in non-farm payrolls in
June and stable wage growth.
The Dow Jones Industrial Average rose 139.29 points,
or 0.57 percent, to 24,496.03, the S&P 500 gained 24.77
points, or 0.91 percent, to 2,761.38 and the Nasdaq Composite
added 95.26 points, or 1.26 percent, to 7,681.68.
Benchmark indexes had opened in negative territory and
gradually rose in morning trade.
"The trade headlines are at this point keeping the market
uncertain," said Quincy Krosby, chief market strategist at
Signs of nervousness about the trade outlook were evident
elsewhere in global markets with the Japanese yen and
the Swiss franc firm against the dollar while core
U.S. and German bonds were in demand.
Benchmark 10-year Treasury notes last rose 7/32
in price to yield 2.8145 percent, from 2.84 percent late on
"Trade war concerns have shot up to the top of our concerns
for investors," said Isabelle Mateos y Lago, chief multi-asset
strategist at BlackRock Investment Institute in London.
"We have to be aware that we are only one tweet away from
much broader tariffs becoming a reality," she said, adding that
investors were trimming broad exposure to riskier assets.
The latest flows data confirmed that trend. Investors have
pulled money out of emerging markets and European equities more
quickly over the last two months than in 2016, Bank of America
Merrill Lynch strategists said on Friday in a weekly note.
The United States and China slapped tit-for-tat duties on
$34 billion worth of each other's imports on Friday, with
Beijing accusing Washington of triggering the "largest-scale
trade war" as the world's two biggest economies sharply
escalated their conflict.
U.S. President Donald Trump has warned that the United
States may ultimately target over $500 billion worth of Chinese
goods, an amount that roughly matches its total imports from
China last year.
Copper, seen as a barometer of the world's economic
strength because of its wide industrial use, fell to near a
one-year low, at $6,221.50 per tonne, before recouping some
U.S. crude rose 1.07 percent to $73.72 per barrel
and Brent was last at $77.11, down 0.36 percent on the
(Reporting by David Randall; additional reporting by Sinead
Carew; editing by Dan Grebler)
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