Oil and copper prices edged lower on Thursday as the U.S.-China trade dispute escalated while global equity markets fell as gains in U.S. technology shares failed to offset declines in commodity-related and trade-sensitive stocks.
The United States and China implemented punitive 25 percent tariffs on $16 billion worth of each other`s goods, even as mid-level officials from both sides resumed talks in Washington.
The dollar rose after minutes released on Wednesday from the Federal Reserve`s most recent meeting suggested the U.S. central bank is on course for further interest rate hikes.
The minutes showed policy-makers discussed how global trade disputes could batter businesses and households. A prolonged trade war could change expectations for monetary tightening.
U.S. trade tensions with China are more likely to deteriorate this year and will dampen global growth next year, Moody`s Investors Service said in an economic outlook report.
A drop in crude prices pushed oil heavyweights lower, with Exxon Mobil leading declining shares in U.S. markets and on MSCI`s gauge of global equity markets <.miwd00000pus>, which shed 0.42 percent.
Oil prices were choppy as the U.S.-Sino trade dispute weighed on the market, but crude drew some support from a report on Wednesday showing a decline in U.S. commercial crude inventories.
Brent
"Fears are rife that economic headwinds stemming from an escalation in their trade war will ultimately hurt global oil demand," said Stephen Brennock, analyst at brokerage PVM Oil Associates.
The dispute has yet to crimp economic growth. Data from the U.S. Labor Department showed the number of Americans filing for unemployment benefits fell last week. They are now so low economists have scrambled for explanations.
In London metals markets, benchmark copper
China accounts for nearly half of global copper consumption and prices are near their highest in two years as manufacturers have rushed to buy refined metal to avoid import tariffs.
In Europe, the pan-European FTSEurofirst 300 index <.fteu3> closed down 0.19 percent, pulled lower by a 1.55 percent fall in trade-sensitive auto <.sxap> stocks. Sixteen companies in the 18-share index fell.
The Dow Jones Industrial Average <.dji> fell 76.62 points, or 0.3 percent, to 25,656.98. The S&P 500 <.spx> lost 4.84 points, or 0.17 percent, to 2,856.98 and the Nasdaq Composite <.ixic> dropped 10.64 points, or 0.13 percent, to 7,878.46.
The trade-sensitive S&P industrials sector <.splrci> dipped .037 percent, while the technology index <.splrct> rose 0.18 percent, the only S&P sector to rise as Microsoft
U.S. Treasuries were little changed ahead of a speech by Fed Chairman Jerome Powell on Friday at the Federal Reserve`s annual economic symposium in Jackson Hole, Wyoming.
"Everybody`s on wait-and-see mode for Jackson Hole tomorrow," said Subadra Rajappa, head of U.S. rates strategy at Societe Generale in New York.
Benchmark 10-year U.S. Treasury notes
Signs of faster economic growth and inflation in the euro zone lifted German 10-year bund yields
The dollar snapped a five-day losing streak.
The dollar index <.dxy> rose 0.51 percent while the euro
The Australian dollar
U.S. gold futures
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
![https://www.zeebiz.com/markets/stocks/photo-gallery-this-tata-group-stock-turned-every-rs-10000-of-investment-into-rs-11300-in-just-a-week-investors-richer-by-42722-crore-rupees-any-guesses-share-market-news-304023](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307143-tradingpexels.jpg?itok=rw4R7EfH)
A Tata group stock just turned every Rs 10,000 of investment into Rs 11,300 in just a week, investors richer by Rs 42,722 crore; any guesses?
![https://www.zeebiz.com/markets/stocks/photo-gallery-large-cap-midcap-stocks-shares-to-buy-for-long-term-check-out-targets-nifty-sensex-303617](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/25/306716-stockks.jpg?itok=KJTrFUIK)
Stocks to buy for long term: Analysts suggest buying these 5 largecap, 4 midcap scrips; check out targets
![https://www.zeebiz.com/personal-finance/photo-gallery-nps-retirement-planning-budget-2024-nirmala-sitharaman-announcement-how-nps-rulebook-change-can-increase-corpus-income-and-monthly-pension-by-40-compound-return-303984](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307102-indian-currency-pixabay-take.jpg?itok=kN21EW-9)
How your NPS retirement corpus and monthly pension can jump by 40% after this rule change; get details
![https://www.zeebiz.com/personal-finance/photo-gallery-senior-citizen-savings-scheme-scss-2024-interest-rate-calculator-post-office-how-to-get-inr-rs-50000-interest-retirement-planning-guaranteed-return-maturity-amount-small-savings-303930](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307042-fd-interest-file.jpg?itok=45ZbBRWM)
How much investment do you need in this senior citizen scheme to get Rs 50,000 quarterly interest? Know here
01:59 AM IST