Wall St. set to fall at open as Trump warns tariffs on Mexico

Wall St. set to fall at open as Trump warns tariffs on Mexico
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FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., May 20, 2019. REUTERS/Brendan McDermid By Shreyashi Sanyal (Reuters) – U.S. stock indexes were set to tumble at open on Friday, hit by fears that President Donald Trump’s shock threat of tariffs on Mexico could prove the trigger that pushes the world’s largest economy into recession. The United States will impose a 5% tariff on all goods coming from Mexico starting on June 10 until illegal immigration is stopped, Trump said in a tweet late on Thursday. Mexican President Andres Manuel Lopez Obrador said he would respond with "great prudence". That shocked global financial markets on Friday and futures pointed to falls of 1 percent or more for all of Wall Street’s major indexes, with carmakers and manufacturers bearing the brunt of the damage. "It is a very sticky situation," said Art Hogan, chief market strategist at National Securities in New York. "American companies needed to find supply chains outside of China when it looked like the (U.S.-China) trade deal is going to take much longer and one of those countries that was pointed to outside the pacific was Mexico." Wall Street is on course for an almost 6% fall in May, its worst performance this year and the trigger for a flood of money into the bond market that has encouraged expectations of a U.S. recession. Adding to risks was Beijing’s warning on Friday that it would unveil an unprecedented […]

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