Micks11 Jul 2018 17:19
This is worth reading
* European stocks fall more than 1 percent
* STOXX set to end six-day winning streak
* U.S. may impose 10 pct tariffs on $200 bln of Chinese goods
* Wall Street slides
LONDON, July 11 (Reuters) - Welcome to the home for real-time coverage of European equity
markets brought to you by Reuters stocks reporters and anchored today by Kit Rees. Reach her on
Messenger to share your thoughts on market moves: kit.rees.thomsonreuters.com@reuters.net
TRADE WAR: "HOPE IS NOT A STRATEGY" (1429 GMT)
Many investors have been shrugging off trade talk as simply rhetoric, and hoping Trump's
further tariffs plans don't materialise. But today's reaction to the administration's new list
of $200 billion of Chinese imports to be taxed suggests the market has begun taking it more
seriously.
"We are worried about tariffs but hopefully as with previous political moves by Trump he
starts very high and then dilutes his ideas," Artur Baluszynski, head of research at Henderson
Rowe, tells us.
"Hope is not a strategy, though, so we're preparing for the worst."
Baluszynski emphasises it's difficult to identify clear victims or winners as global supply
chains are so intricately connected, but says European companies exporting to China are
vulnerable, and that he has tried to avoid capital goods and other sensitive cyclical companies
like Caterpillar (LSE: 0Q18.L - news) and Boeing (NYSE: BA - news) .
"It's been very well flagged up since Trump's campaign that he's going to get into arguments
with China and anyone that he sees as an enemy because the U.S. is running a deficit with it,"
he adds.
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