Overseas financial markets and U.S. futures rebound somewhat after wild day on Wall Street

Overseas financial markets and U.S. futures rebound somewhat after wild day on Wall Street

Overseas shares and U.S. futures advanced Tuesday, led by gains in Tokyo where the Nikkei 225 shot up just over 6% as markets calmed somewhat after the shocks from President Trump ‘s tariff hikes.

The modest rebound for most markets followed a wild day on Wall Street, where stocks careened after Trump threatened to crank his double-digit tariffs higher.

Early Tuesday, China’s Commerce Ministry said it would “fight to the end” and take unspecified countermeasures against the United States after Mr. Trump threatened another 50% tariff on Chinese imports.

Germany’s DAX gained 0.9% to 19,975.81 while the CAC 40 in Paris was up 1.3% at 7,018.79. Britain’s FTSE 100 also picked up 1.3%, to 7,804.73.

Futures for the S&P 500 gained 1.61% early Tuesday while Dow Jones Industrial Average futures were up 2.08% and those for the Nasdaq Composite were 1.33% higher, according to Yahoo Finance.

In Tokyo, the Nikkei 225 closed a smidgen over 6% higher, at 33,012.58.

Hong Kong also recovered some lost ground, but nothing close to the 13.2% dive Monday that gave the Hang Seng its worst day since the 1997 Asian financial crisis.

The Hang Seng gained 1% to 20,036.03. The Shanghai Composite index jumped 1.4% to 3,140.15 after the government investment fund Central Huijin directed state-owned companies to help support the market with share purchases.

South Korea’s Kospi picked up 0.3% to 2,334.23, while the S&P/ASX 200 in Australia climbed 2.3% to 7,510.00.

Markets in Thailand and Indonesia tumbled, however, as they reopened after holidays. Trading was suspended briefly in Jakarta when the JSX index fell more than 9%. It was down 7.6% by mid-afternoon. Thailand’s SET lost 4.2%.

In Taiwan, the Taiex lost 4%, pulled lower by losses for Taiwan Semiconductor Manufacturing Corp., or TSMC, the world’s largest computer chip maker. Its shares fell 3.8% on Tuesday. 

On Monday, the S&P 500 sagged 0.2%, the Dow sank 0.9% and the Nasdaq edged up 0.1% as shell-shocked investors watched to see what Mr. Trump will do next in his trade war. If other countries agree to trade deals, he could lower his tariffs and avoid a possible recession. But if he sticks with tariffs for the long haul, stock prices may fall further, analysts said.  

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