Equities Drop As US-China Trade Row Deepens 24 Sep 2018

Stocks fell Monday across the globe as US tariffs on an additional $200 billion of Chinese imports kicked in, clouding the global economic outlook with prospects of an intensified trade war between the world's top economies.

London, (UrduPoint / Pakistan Point News - 24th Sep, 2018 ) :Stocks fell Monday across the globe as US tariffs on an additional $200 billion of Chinese imports kicked in, clouding the global economic outlook with prospects of an intensified trade war between the world's top economies.

Beijing, which has primed retaliatory tariffs on $60 billion in US goods, initially struck back by accusing Washington of "economic intimidation".

Hopes for talks to resolve the protracted dispute appeared to have been dashed as Beijing reportedly cancelled the visit of a negotiating team that was to travel to Washington later this week.

"The Chinese government confirmed they will not re-engage in trade talks while the US continues to threaten them with additional tariffs," noted David Madden, an analyst at CMC Markets.

"There is a growing sense that the trade spat will drag on, and this is weighing on sentiment," he said.

The latest US tariffs against Beijing brings the amount of goods hit by duties to more than $250 billion, roughly half of China's US exports, with American consumers likely to suffer collateral damage.

- Oil hits 2014 peak - Oil meanwhile spiked higher after the world's top producers decided to maintain output at the weekend, in an apparent rebuff to pressure from US President Donald Trump.

Brent North Sea crude for delivery in November soared to $81.19 per barrel -- the highest level since November 12, 2014 -- before taking a breather.

A committee comprised of the Organization of the Petroleum Exporting Countries (OPEC) cartel and non-OPEC producers said in Algiers that it was satisfied with the current market outlook, which represented "an overall healthy balance between supply and demand".

"Clearly some speculators had expected the world's biggest oil producers to potentially raise crude production levels after Donald Trump's rant in a tweet last week," said forex.com analyst Fawad Razaqzada.

"When the OPEC and its allies refused to do that, those short bets had to be abandoned quickly, causing prices to spike to a new four-year peak.

" In Asia, Hong Kong led a sell-off during holiday-thinned business as trade tensions took centre stage once again.

- Corporate news flow - London investors also digested a brace of merger and acquisition news.

Bucking the trend, Sky shares soared more than eight percent after US cable giant Comcast successfully bid �30.6 billion ($40 billion, 34 billion Euros) for the broadcaster.

Comcast outgunned Rupert Murdoch's 21st Century Fox in a dramatic weekend auction for the pan-European television operator.

Meanwhile, miner Randgold gained a little more than six percent after agreeing to a takeover from Canadian titan Barrick Gold to create a global industry champion worth $18.3 billion.

Holiday operator Thomas Cook saw its share price collapse by more than 28 percent however, after issuing a profit warning on weak demand caused by Europe's recent heatwave. The news also sent rival TUI shares down almost three percent.

In New York, shares in the fashion house Michael Kors fell by more than seven percent in morning trading on reports it was ready to pay more than $2 billion for the Italian brand Versace.

- Key figures around 1530 GMT - London - FTSE 100: DOWN 0.4 percent at 7,458.41 points (close) Frankfurt - DAX 30: DOWN 0.6 percent at 12,350.82 (close) Paris - CAC 40: DOWN 0.3 percent at 5,476.17 (close) EURO STOXX 50: DOWN 0.6 percent at 3,409.71 New York - Dow Jones: DOWN 0.6 percent at 26,588.63 Hong Kong - Hang Seng: DOWN 1.6 percent at 27,499.39 (close) Tokyo - Nikkei 225: Closed for a holiday Shanghai - Composite: Closed for a holiday Euro/dollar: UP at $1.1783 from $1.1749 at 2100 GMT Pound/dollar: UP at $1.3140 from $1.3072 Dollar/yen: DOWN at 112.52 Yen from 112.59 yenOil - Brent Crude: UP $2.38 at $81.18 per barrelOil - West Texas Intermediate: UP $1.42 at $72.20