- Reuters/Carlos Barria
Global stocks slumped Wednesday after the US and China threatened to impose hundreds of billions of dollars worth of tariffs on each other, escalating a trade war between the two largest economies. The dollar and Treasury yields rose.
Here is the scoreboard:
Dow Jones industrial average: 24,701.19 −218.47 (-0.88%)
S&P 500: 2,777.32 −16.52 (-0.59%)
- President Donald Trump threatened to slap tariffs on $200 billion worth of Chinese goods. The move prompted China to promise retaliatory tariffs on the US, and comes days after the two countries imposed duties on $34 billion worth of products each.
- Trump clashed with other NATO leaders at a summit in Brussels. He ranted at members who don’t dedicate the agreed-upon 2% of gross domestic product on defense spending, later demanding that spending target be doubled. He also called Germany a “captive of Russia.”
- Producer prices in the US jumped last month to a peak not seen since 2011. The producer price index rose 0.3% in June, the Labor Department said, lifted by accelerating costs of services and vehicles.
- Canada’s central bank hiked its key rate by 25 basis points to 1.5%. The increase, which was widely expected, came amid a comeback in the housing market and solid jobs growth. Still, the central bank noted growing trade tensions with the US in a statement.
And a look at the upcoming economic calendar:
- The European Central Bank releases meeting minutes.
- Consumer price index data are out in the US.
- China reports trade numbers.