Stocks are coming off a volatile trading session, in which the major averages made a striking turnaround after an initial global sell-off. Ultimately, the major averages ended Monday well off their lows of the day, but they still booked losses. The 30-stock Dow slipped 0.28%, while the S&P 500 fell 0.76%. The Nasdaq Composite dropped 1.2%. Jay Hatfield of Infrastructure Capital Advisors thinks investors are “way too negative” on tariffs, noting that a strengthening dollar over the past few months could offset some of the impacts. He has an S&P 500 year-end target of 7,000, which implies almost 17% upside from Monday’s close.
Stock markets in Asia and Europe fell Monday amid investor concerns about new tariffs U.S. President Donald Trump announced he would levy on imports from China, Mexico and Canada. Britain's FTSE was down about 1.25% in midday trading, while Germany's DAX and France's CAC40 were down about 1.7%. Japan's Nikkei index closed down 2.66%, while South Korea's KOSPI index finished down 2.5%. Hong Kong's Hang Seng index was down more than 2% in early trading before rallying to close down just .07%. U.S. stock futures were down ahead of those markets opening Monday.
Global markets tumbled yesterday over fears of a trade war after Donald Trump imposed huge tariffs on Mexico, Canada and China. But the pound rallied against the euro – driven by hopes that while the European Union may be next in Mr Trump's sights, Brexit Britain could be spared. It followed the US president saying the EU's behaviour was an 'atrocity' and that while the UK was 'out of line... that one can be worked out'. After Mr Trump's comments, referencing trade deficits, the FTSE 100 group of top companies at one point slid by as much as 1.8 per cent, or 154 points, wiping £38billion off its value. Stocks in the US, Europe and Asia were also sharply down. The turbulence erupted after Mr Trump announced tariffs of 25 per cent on imports from America's neighbours Mexico and Canada over the weekend, as well as a 10 per cent charge on Chinese goods. The markets partially recovered after reports the President had agreed to pause tariffs on Mexico.
