Dollar, stocks slide on Trump tweets, dour PMI data

NEW YORK (Reuters) – The dollar and global stock markets fell on Monday after U.S. President Donald Trump said he would restore tariffs on some imports from Brazil and Argentina, while a drop in new U.S. factory orders in November to their lowest since 2012 deepened the decline. European shares posted their biggest daily drop in two months as the threat of tariffs overshadowed data that showed the Chinese and euro zone economies were stabilizing. Investors worried it would only be a matter of time before Trump targets Europe again. MSCI’s gauge of global stock markets had approached a record high last week on expectations Beijing and Washington will hammer out a “phase one” trade deal this year. The dollar posted its biggest slide against the euro since mid-September as the weak U.S. manufacturing data and an unexpected drop in U.S. construction spending in October rekindled worries about a slowing economy. Data from the Institute for Supply Management (ISM) showed the U.S. manufacturing sector contracted for a fourth straight month in November as new orders slid. A World Trade Organization ruling that the European Union continues to provide unfair subsidies to European planemaker Airbus ( AIR.PA ), which supports the U.S. case for retaliatory tariffs, also weighed on European equities. Germany’s export-sensitive DAX .GDAXI stock index tumbled 2.1%, its worst single-day decline since early October, when the WTO approved U.S. moves to slap import tariffs on $7.5 billion worth of European goods. MSCI’s gauge of stocks across the globe […]

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