Global Stocks Decline as Tariff Deadline Weighs on Markets
10 Décembre 2019 - 02:32PM
Dow Jones News
By Anna Isaac
Global markets shifted lower Tuesday as investors look for fresh
cues on the progress of the U.S.-China trade talks ahead of the
weekend's tariff deadline.
Futures tied to the Dow Jones Industrial Average dropped 0.4%,
and the yield on U.S. 10-year Treasurys fell to 1.805%, down from
1.829% Monday. Gold, like government bonds, a traditional haven for
investors, rose 0.5%. The pan-continental Stoxx Europe 600 gauge
fell 0.9%.
Markets are waiting on a decision from President Trump regarding
whether he will delay instituting new tariffs on imports from China
by a Dec. 15 deadline, as the levies carry the risk of boosting
prices on products for American households and may prompt
retaliatory measures.
Meanwhile, U.S. lawmakers are taking aim at China with a new
bill that would bar the use of federal funds to buy Chinese buses
and railcars, congressional aides familiar with the matter told The
Wall Street Journal. That may complicate Mr. Trump's efforts to
reach an initial trade agreement, which would bring to a halt
tensions that have made markets jittery for much of the year.
Over in China, the government last year introduced a sweeping
policy to curtail its use of foreign technology products by
awarding more contracts to domestic suppliers, people familiar with
the matter said. The initiative, which hadn't been made public, may
help China double down on its efforts to decouple its technology
sector from the U.S.
Markets have been parsing such signals as they try to gauge the
potential outcome of the trade negotiations, though some investors
say a degree of fatigue has also set in.
"On the one hand, there's the boy-who-cried wolf aspect, where
investors have heard it all before," said Oliver Jones, market
economist at Capital Economics. "On the other hand, the outcome
really does impact equity markets one way or another, it impacts
the earnings of big tech companies and manufacturers."
Ahead of the New York opening bell, shares in NortonLifeLock
climbed over 4% after The Wall Street Journal reported that the
consumer-software company has attracted deal interest from a range
of companies including rival McAfee.
AutoZone shares rose almost 6% in premarket trading after the
car-parts retailer's profit beat estimates for the quarter.
Regeneron dropped 3.7% after French drugmaker Sanofi said it may
sell its stake in the U.S. biotech company.
Within European equities, Sanofi climbed over 4% in Paris after
the company said it would stop its research efforts in the
challenging field of diabetes, and offered a bullish forecast for
its star drug Dupixent.
The U.K.'s FTSE 100 index dropped almost 1%, in line with most
other major European markets. Britain is preparing to head to the
polls Thursday for a crucial election.
Federal Reserve officials are poised to begin a two-day meeting
Tuesday, where they are expected to decide to hold steady on
interest rates as Friday's strong jobs report will likely reassure
policy makers about the strength of the economy.
Write to Anna Isaac at anna.isaac@wsj.com
(END) Dow Jones Newswires
December 10, 2019 08:17 ET (13:17 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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