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%)
- 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.
- 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.
- 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.
- 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.
- 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.