By Elaine Kurtenbach, Associated Press Business Writer
Stocks fell nearly low in Europe on Tuesday after a mixed session in Asia. The session saw the rise in the Chinese market, which resumed after the “Golden Week” holiday.
Germany’s DAX fell 1.2% to 23,076.96, while Paris’ CAC 40 lost 7,682.91 at 0.6%. The UK FTSE 100 was unchanged at 8,596.40.
The future of the S&P 500 lost 0.7%, and the future of the Dow Jones industrial average was 0.5% lower as investors were looking to see what US President Donald Trump is doing with his tariff policy.
When asked during a regular briefing about Trump’s comments on the NBC TV network, a spokesman for the Chinese Foreign Ministry said that the US should “intimidate, pressure and engage in dialogue with China based on equality, respect and mutual interest,” China’s Foreign Ministry spokesman was asked about Trump’s comments that he would not cancel tariffs on China to pave the way for trade negotiations.
“If they want to fight, we’ll fight to the end. If they want to talk, the door is open,” Lin Jiang said.
Later last week, China’s Commerce Department said it was evaluating various US mischiefs regarding holding talks.
Still, after reopening from the Golden Week holiday, the Chinese market has moved forward. The Shanghai Composite Index added 3,311.89 to 1%, while Hangsen in Hong Kong rose 0.7% at 22,651.65.
Monthly surveys measuring future activity in China’s services sector have fallen to the lowest ever, excluding the pandemic, further indications that President Donald Trump’s trade war escalation has been hit by the world’s second-largest economy.
The dramatic increase in tariffs on US imports of Chinese goods increased to 145%, causing a sharp drop in transportation and other logistics.
“Since the series began in April 2012, overall optimism for Chinese companies has weakened to a lowest level, with further job openings being cut in April,” a report from financial media group Caixin said.
However, the report showed a sharp rise in tourism revenues during the holidays that ended Monday, suggesting robust domestic demand, the economist said.
Elsewhere in Asia, the Australian S&P/ASX 200 lost 0.2% at 8,148.40.
India’s Sensex fell 0.2%, while Taiwan’s Taiex slipped below 0.1%. In Indonesia, JSX increased by 1%.
Oil prices rose more than a dollar early on Tuesday, bounced back from their first low in four years after the OPEC+ oil producer group’s decision to raise 411,000 barrels per day as of June 1.
US benchmark crude took between $1.10 and $58.23 per barrel, while international standard Brent crude reached $1.15 to $61.38 per barrel, from $1.15 to $61.38 per barrel.
On Monday, the S&P 500 fell 0.6% to 5,650.38, ending its longest nine-day winning streak since 2004.
Berkshire Hathaway has fallen 5.1% after legendary investor Warren Buffett announced he would step down as CEO by the end of the year after 60 years of helm. Buffett is still chairman of the board.
The market has absorbed the tariff shock and the growing trade war.
Such issues will overshadow the Federal Reserve meeting on Wednesday, when it is expected to stabilize benchmark interest rates. The Fed cut its rate three times in 2024 before taking a breather and watching what happens with inflation.
Although still resilient, the US economy shrank 0.3% in the first quarter, bringing its first decline in three years.
Ford Motor Co. said Monday that it is expected to suffer a $1.5 billion hit to operating profit from tariffs this year. The stock fell 2.5% after trading.
The latest Salvo in the trade war from Trump came on Sunday night with a post on his true social platform. He said that films have allowed 100% tariffs on films produced outside the US, as it is common for films to include production in multiple locations around the world.
Also, early on Tuesday, the Treasury yields rose from 4.36% in 2010 to 4.36% late Monday.
The dollar fell from 143.70 yen to 142.96 days. The euro was $1.1339, up from $1.1317.
Original issue: May 6, 2025, 8:12am EDT
