Stocks stumble as the US and China hit one another with billions of dollars worth of tariffs

Stocks stumbled Friday after the Trump administration slapped China with hefty tariffs on billions of dollars worth of Chinese goods, prompting retaliation and stoking a trade battle between the world’s largest economies. Crude oil slid ahead of next week’s meeting among oil-supply-cutting countries. The dollar and Treasury yields struggled to find direction.

Here’s the scoreboard:

Dow Jones industrial average: 25,088.12 −87.19 (-0.35%)

S&P 500:2,778.01 −4.48 (-0.16%)

  1. President Donald Trump officially hit China with a 25% tariff on $US50 billion worth of goods.Targeted products include “industrially significant technologies,” especially those that contribute to Beijing’s Made in China 2025 initiative.
  2. China fired back with a 25% tariff on US goods. More than 500 items, including agricultural, auto, chemicals and seafood products, will be subject to the tariff starting July 6; 114 more items will be added at a later date.
  3. Oil fell ahead of a June 22 OPEC meeting in Vienna. Saudi Arabia and Russia are reportedly going to propose the cartel heads toward a reversal of supply cuts amid output disruptions and pressure from the US. Brent, the international benchmark, fell 3.45% to $US73.30.
  4. US industrial production slipped unexpectedly last month. Industrial output fell by 0.1%, compared with economist expectations of a 0.2% rise, pulled down by the sharpest monthly decline in manufacturing since January 2014.
  5. Canada Goose posted earnings that rocketed past expectations. The report sent shares of the company soaring more than 30% to $US59.93.

And a look at the upcoming economic calendar:

  • European Central Bank President Mario Draghi speaks.
  • Housing data and central bank meeting minutes are out in Australia.

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