)
03:00 AM IST
Concerns about an escalating U.S.-China trade war made markets topsy-turvy on Wednesday, with U.S. stocks breaking a four-session winning streak and Brent crude prices seeing their biggest one-day drop in two years.
Even so, the U.S. dollar hit a six-month high against the safe-haven Japanese yen as currency traders put trade worries aside and focused on Labor Department data that showed producer prices rising more than expected.
Metal prices also slumped after U.S. President Donald Trump`s threat overnight of 10 percent tariffs on another $200 billion of Chinese goods dampened hopes that Washington will eventually step back from the escalating row.
The clock now starts ticking on a two-month period of public comment before the levies are imposed. Trump has said he may ultimately target more than $500 billion worth of Chinese goods - roughly the total amount of U.S. imports from China last year.
"Unfortunately the markets haven`t come to grips with the current levels of trade policies and tariffs," said Art Hogan, chief market strategist at B. Riley FBR in New York.
"Concerns over trade and trade wars are really having an adverse effect, less so on the U.S. markets than the international markets, but it is certainly taking a bite."
The Dow Jones Industrial Average <.dji> fell 219.21 points, or 0.88 percent, to 24,700.45, the S&P 500 <.spx> lost 19.82 points, or 0.71 percent, to 2,774.02 and the Nasdaq Composite <.ixic> dropped 42.59 points, or 0.55 percent, to 7,716.61.
In currencies, both the yen and the dollar act as safe-haven investments. But the strength of the greenback against the yen suggests investors are reflecting faith in the U.S. economy rather than seeking safety.
The dollar index <.dxy> rose 0.6 percent, with the euro
The Japanese yen weakened 0.92 percent versus the greenback at 112.02 per dollar.In Europe, shares extended losses after Trump kicked off a NATO summit in Brussels by accusing Germany of being a "captive" of Russia.[.EU]
Australia`s dollar, often seen as a proxy for China`s economic fortunes due to Australian raw materials exported there, extended losses and was last down 1.21 percent.
Industrial metals copper, zinc and lead all slumped as much as 4 percent to their lowest levels in about a year over worries that the trade dispute could dent China`s commodity-hungry economy. [MET/L]
Copper
Three-month aluminum on the London Metal Exchange
Oil also fell on news that Libya would reopen its ports, raising expectations of a growing supply.
U.S. crude
(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
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
Cost of home-cooked thalis declines 6% in May, driven by cheaper vegetables: Crisil report
India GDP growth at one-year high of 7.4% in Q4, FY25 expansion at 6.5% 
India set to become 3rd largest economy by 2027: Piyush Goyal
Can insurance industry use CIBIL-like credit scores soon?
India's GDP likely grew by 7% in Q4FY25; current fiscal year GDP to settle at 6.3%: Report
