Asian shares fell Wednesday following a slide on Wall Street amid growing tensions between the U.S. and the European Union and a dim forecast on global economic growth
Japan's benchmark Nikkei 225
dropped 0.6%. Australia's S&P / ASX
XJO, + 0.03%
was flat, along with the South Korea's Kospi
SEU, + 0.49%
Hong Kong's Hang Seng
drop 0.4%, while the Shanghai Composite
SHCOMP, + 0.01%
fell almost 0.4%.
On Wall Street, the S&P 500
index fell 17.57 points, or 0.6%, two 2,878.20. The Dow Jones Industrial Average
dropped 190.44 points, or 0.7%, to 26.150.58. The Nasdaq Composite
wear 44.61 points, or 0.6%, to 7,909.28. The Russell 2000 index
or small-cap stocks gave up 19.32 points, or 1.2%, or 1,559.68. Threatened to impose $ 11.2 trillion in tariffs on European products, including cheese, wine and helicopters.
The threat from President Donald Trump could make investors even more concerned about trade disputes and already slowing global economy at a time when the U.S. is trying to resolve a trade conflict with China.
That spat has already made a list of goods more expensive for consumers and is weighing on an already slowing Chinese economy. Negotiators with again last week and both sides have said they are making progress.
Traders also were disappointed to see that the International Monetary Fund lowered its forecast for global growth this year. The IMF now projects 3.3% global growth in 2019, matching the weakest year since 2009. The U.S. fared particularly poorly in the report, with growth now expected at 2.3%, down from 2.9% in 2018.
Investors will get more clues about the Fed's intentions Wednesday, when the central bank releases minutes from its latest policy meeting. The European Central Bank will also meet Wednesday
"Amid the growth and trade tension groups once again, sentiments in Asia markets have once again been undermined," said Jingyi Pan, market strategist at IG in Singapore.
Benchmark US crude
CLK9, + 0.36%
rose 11 cents to $ 64.09. It fell 0.7% to settle at $ 63.98 a barrel Tuesday. Brent crude
LCOM9, + 0.20%
added 4 cents to $ 70.65 a barrel.
fell to 111.14 yen from 111.28 yen Tuesday. The euro
EURUSD, + 0.0977%
inched down to $ 1,127 from $ 1,127.
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