Page 25 - ARUBA TODAY

BUSINESS Saturday 16 June 2018
A25

US stocks and bond yields dip amid trade worries

By STAN CHOE tion at next week's OPEC
NEW YORK (AP) — U.S. meeting. Benchmark U.S.
stocks fell on Friday after crude fell $1.83 to $65.06
the Trump administration per barrel. Brent crude, the
stepped up the trade dis- international standard, lost
pute between the world's $2.50 to $73.44 per barrel.
two biggest economies That helped drag energy
by announcing tariffs on in the S&P 500 down 1.6
$50 billion of imports from percent for the largest loss
China. The S&P 500 pared among the 11 sectors that
its loss as the day wore on, make up the index. Mara-
though, and was down thon Oil had the biggest
only modestly in afternoon loss in the S&P 500, down
trading. 4.4 percent to $20.20.
After the Trump administra- WORLD MARKETS: Stock
tion's tariff announcement, markets in Europe and Asia
China almost immediate- were mostly down.
ly said it would retaliate The DAX in Germany lost 0.7
with its own of the same percent, and the CAC 40 in
scale, raising the possibil- France dipped 0.5 percent.
ity of an escalating trade In London, the FTSE 100 lost
war that could leave the 1.7 percent. In Asia, South
global economy as col- Korea's Kospi shed 0.8 per-
lateral damage. Barriers to cent, and the Hang Seng in
trade could result in higher Hong Kong fell 0.4 percent.
prices at stores for all kinds Japan's Nikkei 225 index
of products, weaker profits was an outlier and rose 0.5
for companies and slower percent.
growth around the world. YIELDS: Treasury yields fell
Many economists see free for a second straight day,
trade as a boon for the and the yield on the 10-
global economy, making year Treasury sank to 2.92
it more efficient and al- percent from 2.94 percent
lowing companies to earn late Thursday.
bigger profits, which in turn COMMODITIES: Gold
leads to higher stock prices. dropped $29.80 to settle at
President Donald Trump, $1,278.50 per ounce, silver
though, has railed against fell 78 cents to $16.48 per
the deficits that the United ounce and copper lost 8
States has with other coun- cents to $3.14 per pound.
tries as unfair. Natural gas rose 6 cents
Investors have been closely to settle at $3.02 per 1,000
following the United States' cubic feet, heating oil lost
trade disputes with its part- 7 cents to $2.09 per gallon
ners, and many had ex- and wholesale gasoline fell
pected Trump to announce In this April 26, 2018, file photo, Vincent Pepe stands outside the New York Stock Exchange where 7 cents to $2.02 per gallon.
tariffs against Chinese im- he works in the Financial District in New York. CURRENCIES: The dollar
ports. Some hope that they Associated Press rose to 110.60 Japanese
are used as a negotiat- yen from 110.57 yen late
ing tool to craft sweeping cent of April 4, when stocks Attention is focused on cen- creases may be on the way Thursday. The euro rose to
trade deals rather than as plunged at the opening tral banks because they're in 2018, which was more $1.1611 from $1.1591, and
ends in themselves. bell on worries about a pos- in various stages of pulling aggressive than some in- the British pound rose to
"It's something that could sible tariff tiff between the away from the emergency vestors expected. It's mak- $1.3283 from $1.3281.q
hurt the economy if fol- United States and China stimulus they put in place ing the moves because of
lowed through on, but for only to end the day higher. following the Great Reces- the stronger economy, and
now, markets seem to be The Dow Jones industri- sion. The Bank of Japan de- that may mean something
assessing this as just a ne- al average dropped 65 cided on Friday to keep its counterintuitive for the lay
gotiation that is out there points, or 0.3 percent, to stimulus program on track, investor.
for everyone to see," said 25,109 , and the Nasdaq for example. A day earlier, "Stocks and the economy
Matthew Miskin, markets composite sank 12, or 0.2 the European Central Bank might go separate ways,"
strategist with John Han- percent, to 7,749. said it would halt its bond- Miskin said. "The economy
cock Investments. A BUSY WEEK: Friday's tar- buying program after the might actually feel good
KEEPING SCORE: The S&P iff announcement caps a end of the year, though it for the first time in a de-
500 was down nearly 2 whirlwind week full of en- also pledged to hold off on cade, but the problem is
points, or 0.1 percent, at couraging reports on the rate increases through the that those tend to be the
2,781, as of 2:50 p.m. East- U.S. economy and policy summer of 2019. periods at the end of the
ern time. It had been on announcements from the The Federal Reserve is fur- cycle."
pace for its worst day since world's biggest central ther along this path. On OIL SLIDE: The price of
late May before clawing banks. So while the trade Wednesday, it raised its crude dropped sharply
back most of its losses as the dispute hurt stocks on Fri- benchmark rate for the amid speculation that oil-
afternoon progressed. The day, it wasn't the only thing fourth time in the last year producing countries could
day's action was reminis- moving markets. and indicated two more in- push to increase produc-