Markets slide over tariffs, German tensions

singapore — Global stocks dropped on Monday on concerns over trade as the US and China scheduled the start of tariffs on each other’s goods, and a row over migrants threatened the German government.

Markets in China and Hong Kong were closed for a holiday.

Germany’s DAX lost 1.3 per cent to 12,839 and France’s CAC 40 shed 1.2 per cent to 5,433. Britain’s FTSE 100 dipped 0.4 per cent to 7,605. Wall Street was poised to open lower.

Dow futures dropped 0.7 per

Caution appears to be the key word for Asian markets today as investors digest the potential implications of the US-China tit-for-tat tariff measures Selena Ling, Chief economist, OCBC Bank

cent and the S&P 500 futures were down 0.6 per cent.

Tariffs mooted by the world’s two biggest economies are set to take effect from July 6, bolstering fears of a trade war. President Donald Trump has announced a 25 per cent tariff on up to $50 billion of Chinese products. China is retaliating by raising import duties on $34 billion worth of American goods, including soybeans, electric cars and whiskey.

“Caution appears to be the key word for Asian markets today as investors digest the potential implications of the US-China tit-for-tat tariff measures,” said Selena Ling, chief economist at OCBC Bank.

Chancellor Angela Merkel’s Bavarian allies are tangled in a dispute with the German leader over migration, a conflict that could escalate into a threat to her government. Interior Minister Horst Seehofer, who heads the Bavaria-only Christian Social Union, wants Germany to refuse migrants who were previously registered as asylumseekers in other European countries. Merkel opposes unilateral action, arguing that it would weaken the 28-nation European Union.

Japan’s benchmark Nikkei 225 index dropped 0.8 per cent to close at 22,680.33. South Korea’s Kospi lost 1.2 per cent to 2,376.24. Australia’s S&P/ASX 200 gained 0.2 per cent to 6,104.10. Southeast Asian indexes were mostly lower.

The dollar inched down to 110.47 yen from 110.62 in late trading Friday. The euro rose to $1.1617 from $1.1607. —