Wall Street braced for more tariffs, futures point lower

[September 17, 2018]  By Shreyashi Sanyal

(Reuters) - U.S. stock markets were set to open lower on Monday on signs China would retaliate if President Donald Trump makes good on threats to announce new tariffs on $200 billion of Chinese goods.

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., September 11, 2018. REUTERS/Lucas Jackson

A senior administration official told Reuters over the weekend that Trump announce the new tariffs as early as Monday and a widely read Chinese tabloid warned China would not be content to only play defense.

The Wall Street Journal also reported that Washington may set tariff levels at about 10 percent, below the 25 percent the administration said previously it was considering for this round.

Dow e-minis <1YMc1> dipped 0.09 percent, S&P 500 e-minis <ESc1> 3.75 points, or 0.13 percent and Nasdaq 100 e-minis <NQc1> 12.5 points, or 0.17 percent ahead of the opening bell.

"Investors are highly concerned about Trump's upcoming decision," said Naeem Aslam, chief market analyst at Think Markets UK in London, United Kingdom.

"Trump is determined to put (in place) another round of tariffs, despite hopes last week that the White House may be able to resolve this matter with Beijing in a more peaceful fashion."

Trade-sensitive Boeing <BA.N> dropped 0.4 percent in light premarket trading.

Apple <AAPL.O> fell 0.6 percent. The iPhone maker had earlier said tariffs could hit a "wide range" of its products.

The trade issues have also tended to weigh on shares in chipmakers, which get a large portion of their revenue from selling to Chinese electronics producers. Micron <MU.O> dropped 1.4 percent while Intel shares <INTC.O> were last down 0.1 percent.

U.S.-listed Chinese firms also declined. Alibaba <BABA.N> fell 1.7 percent, JD.com <JD.O> 3.1 percent and Baidu <BIDU.O> 1.4 percent.

(Reporting by Shreyashi Sanyal in Bengaluru; editing by Patrick Graham)

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