Investing.com - Here are the top five things you need to know in financial markets on Tuesday, June 19:
1. Trump Seeks Additional $200B In Tariffs Against China
U.S. President Donald Trump fired a fresh salvo in the ongoing trade spat between the U.S. and China, further raising tensions between the world's two largest economies.
Trump said late on Monday that he had asked U.S. trade representative Robert Lighthizer to identify $200 billion worth of Chinese products that will be subject to additional tariffs of 10%.
The new duties will go into effect "if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced," the president said in a statement provided by the White House.
It's the latest development in escalating trade tensions between the world's two largest economies. On Friday, the U.S. announced a 25% tariff on up to $50 billion of Chinese products, prompting Chinese President Xi Jinping's administration to respond with a 25% tariff on $34 billion of U.S. goods.
2. China Vows To Retaliate
China's Commerce Ministry vowed that it will take counter measures if the U.S. publishes an additional tariffs list.
In a statement posted on its website this morning, the ministry said China will protect its interests, taking both quantitative and qualitative measures against the move.
The fresh threats of additional tariffs violate prior negotiations and consensus reached between the two countries, the Chinese Commerce Ministry said. A trade war will hurt companies and people in both countries, it added in the Chinese statement.
China's Foreign Ministry, meanwhile, said the country does not want a trade war, but it's not afraid to engage in one.
The latest back-and-forth measures have sparked concerns that Washington and Beijing have entered into a full-blown trade war that could damage global growth.
3. Dow Futures Plunge More 300 Points
U.S. stock futures pointed to sharp losses at the open, as worries over a brewing trade war between the United States and China kept investors on the edge.
At 5:40AM ET, the blue-chip Dow futures were down 350 points, or around 1.4%, on track for a sixth losing session in a row.
The S&P 500 futures slumped 32 points, or 1.1%, while the tech-heavy Nasdaq 100 futures indicated a loss of 76 points, or roughly 1%.
In earnings news, notable results expected out Tuesday include Oracle (NYSE:ORCL) and FedEx (NYSE:FDX), which are both expected to report earnings after the market close.
Elsewhere, European markets slid for a third straight session to hit their weakest level in almost two months, as automakers and miners, seen among the sectors most at risk of a trade war, led losses.
Earlier, Chinese markets led losses in Asia, with major markets in the region closing sharply lower. On the mainland, the Shanghai composite fell 3.8% to close near two-year lows, while the smaller Shenzhen composite sank 5.8%.
4. U.S. Housing Data, Fed Speakers On Tap
Market players will focus on U.S. housing sector data to gauge the strength of the world's largest economy and how it will impact monetary policy in the months ahead.
The Commerce Department at 8:30AM ET is expected to report building permits fell 1.4% from a month earlier to 1.35 million units, while housing starts are forecast to rise 1.4% to 1.31 million units.
Among central bank speakers, St. Louis Federal Reserve Chief James Bullard is due to appear at 7:00AM ET at the 2018 ECB Forum on Central Banking in Sintra, Portugal.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was 0.5% higher at 94.90, remaining within sight of Friday’s 11-month high of 95.13.
In the bond market, the U.S. 10-year Treasury yield dipped to around 2.87%.
5. Oil Markets Stay Volatile Ahead Of OPEC Meeting
Crude oil markets remained volatile as energy investors weighed potential outcomes for a meeting of major crude producers later this week.
Oil ministers from OPEC, Russia and other major producing countries will meet in Vienna on Thursday and Friday to review their current production agreement that has held back 1.8 million bpd from the market for the past 18 months.
OPEC's de facto leader, Saudi Arabia, and non-member Russia have proposed relaxing production cuts gradually, while OPEC members Iran, Iraq, Venezuela and Algeria have opposed such a move.
New York-traded WTI crude futures shed 85 cents, or 1.3%, to $64.84 per barrel, while Brent futures declined 40 cents, or 0.6%, $74.95 per barrel.
Meanwhile, the American Petroleum Institute is due to release its weekly report on U.S. commercial crude inventories at 4:30PM ET, amid forecasts for an oil-stock decline of 2.6 million barrels.