An escalation in the global trade tiff sent US futures into a tailspin this morning, hamstringing the ASX's chances of a third straight advance.
US futures plunged after President Trump asked officials to explore imposing an additional US$100 billion in tariffs against China. S&P 500 futures were lately down 28.5 points or 1.07%. The news overrode otherwise positive overnight leads and helped push the ASX 200 down a point or less 0.1% to 5787.
The local index hit a session low of 5762 before staging a partial recovery as traders picked up energy stocks +0.8%, metals & mining +0.4% and industrials +0.1%. Hampering the recovery were falls in utilities -0.4%, health -0.3% and financials -0.2%.
"Markets rallied on the idea the tariffs were just to start a negotiation," Tom Essaye, founder of The Sevens Report, told CNBC. "Trump's $100 billion comment implies this is going to get a lot more serious and basically quasi-shatters the idea that the tariffs were just a negotiation starting point."
Asian markets appeared relaxed about the latest volley from the White House. Hong Kong's Hang Seng rallied 1.27% and Japan's Nikkei 0.13%. China's Shanghai Composite was closed for a public holiday.
US crude sank with equity futures. WTI oil futures were lately down 38 cents or 0.6% this morning to US$63.16 a barrel. Gold futures jumped $6.20 or 0.47% to US$1,334.70 an ounce. The dollar was buying 76.86 US cents.
Trading: tricky morning. In and out of IMU for brokerage. First nibble at PDZ following four days of utter collapse. Made something from IVX yesterday and watching closely again today.
