Global markets are still feeling the effects of U.S. President Donald Trump’s latest play in the nations trade war with China.
Last week President Trump imposed an additional ten per cent in tariffs on $300 billion worth of Chinese imports. Adding to the existing 25 per cent tariffs on $250 billion worth of goods.
In the States, the S&P 500 suffered its worst week of the year, closing at 2,932.05, down 0.7 per cent. Dow Jones closed at a loss of 98.41 points, however redeemed itself from its lowest recorded figure in the day, down 334.20 points. The index closed at 26,485.01. Nasdaq fell 1.32 per cent to close at 8,004.07.
As the Asian markets open for the week, they continue to slide from last week’s downfall. Nikkei is down an additional 1.98 per cent, after closing at a decrease of over 2 per cent. Hang Seng is in the red, down 2.21 per cent and Asia Dow is suffering a hit of 1.79 per cent.
The trade war tensions continue to impact the Australian market with the ASX 200 down 1.25 per cent this morning. The index currently sits at 6,705.30, a fall from last weeks record as the ASX 200 peaked to its highest level ever.
While majority of the ASX 200 is in the red today, Ardent Leisure is surpassing the trend as the indexes best performer. The leisure and entertainment company, who own Dreamworld, is up 5.11 per cent at $1.24 per share.
Aussie mining giants Rio Tinto and BHP are down 2.21 per cent and 2.14 per cent, respectively.
The banking sector is taking fractional hits, with Commonwealth bank down 0.098 per cent, sitting at $81.80 a share. Westpac is down 0.49 per cent with share $28.68 a piece. NAB has slid 0.84 per cent to $28.27 and ANZ is down 1.04 per cent at $27.50 per share.
Iron ore prices are down 4.8 per cent on last weeks close and oil is down 0.72 per cent during todays trading.
Gold, however, is up 0.20 per cent, a welcome growth ahead of WA’s Diggers and Dealers conference which will see thousands of key players in the mining and resources sector meet. The first presentations begin this morning and will continue through to Wednesday, August 7.
The Australian dollar is continually weakening against other global currencies. The AUD is down to 71.86 Japanese Yen, against the Euro, the dollar is now worth €0.61, it has dropped against the pound sterling to 56 pence and in the States the Aussie dollar is equal to 68 US cents.
The Chinese yuan has plummeted past global financial year lows against the year US dollar , down another 1.20 per cent, exceeding the seven per dollar mark.
European stocks are also in decline in the fallout of the trade war. From last week’s close Stoxx 600 is down 2.4 per cent, FTSE 100 is down 2.34 per cent and DAX is down 3.11 per cent.