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Global Stocks Lower on Trade War Fears 07/18 05:51

   Global stock markets followed Wall Street lower Thursday after President 
Donald Trump said he could impose more tariffs on Chinese goods and Japan's 
exports tumbled.

   BEIJING (AP) -- Global stock markets followed Wall Street lower Thursday 
after President Donald Trump said he could impose more tariffs on Chinese goods 
and Japan's exports tumbled.

   Benchmarks in London, Frankfurt, Shanghai and Tokyo all declined. 

   Trump alarmed investors by saying he had $325 billion of Chinese imports 
available for additional tariffs "if we want." That shook markets that had been 
reassured by Trump's June agreement with Chinese President Xi Jinping to resume 
trade negotiations.

   The Chinese government warned tariff hikes would "create a new obstacle" in 
talks on ending their bruising fight over Beijing's technology ambitions.

   Trump's comment "cast a dark cloud over lingering concerns on trade talk 
progress," Mizuho bank analysts said in a report.

   In early trading, London's FTSE 100 fell 0.6% to 7489.52 and Frankfurt's DAX 
declined 0.9% to 12,232.74. France's CAC-40 lost 0.6% to 5539.39.

   On Wall Street, futures for the Standard & Poor's 500 index and the Dow 
Jones Industrial Average were down 0.3%.

   In Asia, the Shanghai Composite Index lost 1% to 2,901.18 and Tokyo's Nikkei 
225 tumbled 1.9% to 21,046.24. Hong Kong's Hang Seng retreated 0.5% to 
28,438.99 and Seoul's Kospi was 0.3% lower at 2,066.55. India's Sensex lost 
0.4% to 39050.29.

   Sydney's S&P-ASX 200 shed 0.4% to 6,649.10. Taiwan and New Zealand gained 
while Southeast Asian markets were mixed.

   Japan reported June exports declined 6.8% from a year earlier. Imports fell 
5.2%. For the first six months of this year, Japanese exports slipped 4.7% 
while imports edged 1.1% lower.

   "Continued weak global production and cautious approaches to fixed 
investment will likely weigh on Japan's exports over the near term," Harumi 
Taguchi of IHS Markit said in a report.

   The South Korean central bank cut its benchmark rate for a one-year loan by 
0.25 percentage points to 1.5%. It was the first reduction since 2016.

   The Bank of Korea cut its 2019 economic growth forecast by 0.3 percentage 
points to 2.2%.

   Even that might be "somewhat optimistic," said Ma Tieying of DBS Group. She 
wrote in a report that weak global demand, a trade dispute with Japan and 
U.S.-Chinese tensions "pose challenges" for this year's growth.

   On Wednesday, U.S. stocks fell for a second day as railway operator CSX had 
its biggest drop in 11 years and pulled down other industrial companies. CSX 
plunged 10.3% after saying it expects this year's revenue to decline as much as 
2%, after previously saying it expected growth.

   The S&P 500 fell 0.7% and the Dow lost 0.4%. The Nasdaq composite retreated 

   Banks fell due to worries lower interest rates will hurt profits. Investors 
expect the Federal Reserve to cut rates for the first time in a decade at their 
next policy meeting in two weeks.

   Corporate earnings reports are getting into full swing this week, and 
investors have been mostly cautious in their assessments of them. Earnings are 
still expected to decline for S&P 500 companies in the second quarter.

   ENERGY: Benchmark U.S. crude lost 21 cents to $56.57 per barrel in 
electronic trading on the New York Mercantile Exchange. The contract fell 84 
cents on Wednesday to close at $56.78. Brent crude, used to price international 
oils, lost 9 cents to $63.57 in London. It lost 69 cents the previous session 
to $63.66.

   CURRENCY: The dollar declined to 107.72 yen from Wednesday's 107.98 yen. The 
euro gained to $1.1240 from $1.1226. 


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