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Market pain; Italy turmoil; Trade war fears

1. Market turmoil: Global markets were mixed Wednesday following a selloff sparked by fears over Ita...

Posted: May 30, 2018 9:51 AM
Updated: May 30, 2018 9:51 AM

1. Market turmoil: Global markets were mixed Wednesday following a selloff sparked by fears over Italy's escalating political crisis and renewed US-China trade tensions.

Asian markets were hit badly by the uncertainty, with Japan's Nikkei closing down 1.5%. Hong Kong's Hang Seng shed 1.4%, while China's Shanghai Composite dropped 2.5%.

European markets opened mixed, with Italy's benchmark index advancing 1% following several days of heavy losses.

US stock futures were pointing higher.

The Dow slumped 1.6% on Tuesday, the S&P 500 dropped 1.2% and the Nasdaq shed 0.5%. Banks were the biggest losers, with Citigroup, Bank of America and JPMorgan Chase sliding 4%. Morgan Stanley declined 6%.

2. Italy in crisis: Italy will test the faith of investors on Wednesday when it tries to sell -6 billion ($7 billion) of government bonds.

Italy is heading for new elections after populist politicians failed to form a government, and the vote could turn into a de-facto referendum on the euro.

Investors are worried that political turmoil in Italy could cause pain beyond the country's borders. Yields on Spanish, Portuguese and Greek debt have surged.

Italian bonds prices have crashed in recent days, but were steadier early Wednesday. The auction will conclude at 5:00 a.m. ET.

3. Trade war back on: The White House announced Tuesday that it would impose 25% tariffs on $50 billion worth of goods from China, and place new limits on Chinese investments in US high-tech industries.

The world's two biggest economies held two rounds of trade talks this month. They agreed China would "significantly increase" purchases of US goods and services to reduce their trade imbalance, a top Trump administration demand, and pledged to continue talks.

In a statement, China's Commerce Ministry said the announcement is "obviously in violation" of the recent agreement.

Beijing has previously pledged to retaliate against the 25% tariffs.

4. The Volcker Rule decision time: The US Federal Reserve will meet to discuss possible changes to the Volcker Rule, a controversial part of Wall Street reform following the financial crisis.

The rule prevents banks like Goldman Sachs or JPMorgan from making risky wagers with their own money, and also from owning big stakes in hedge funds or private equity firms.

Wall Street has complained about the rule for years.

5. Martin Sorrell is back: Martin Sorrell says he has taken control of Derriston, a listed shell company in London.

The reverse takeover deal will see Derriston transformed into S4 Capital, a "multi-national communication services business," according to an announcement.

In April, Sorrell resigned from ad agency WPP after three decades as CEO amid an investigation into "personal misconduct."

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6. Companies and economics: Dick's Sporting Goods, DSW, Michael Kors and Sears Holdings will release earnings before the open. Guess? will follow after the close.

Salesforce shares jumped higher in extended trading after the company reported better than expected earnings.

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7. Coming this week:
Wednesday - Amazon, Exxon Mobil, Twitter, Walmart annual shareholder meetings; Fed discusses Volcker Rule
Thursday - Facebook annual shareholder meeting
Friday - May jobs report

California Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 318761

Reported Deaths: 7027
CountyConfirmedDeaths
Los Angeles1303943795
Riverside24765537
Orange23901421
San Diego19371422
San Bernardino18912304
Fresno790687
Imperial7827135
Alameda7725148
Kern633997
San Joaquin627968
Santa Clara5983166
Tulare5678152
Sacramento533981
Stanislaus463351
Contra Costa460589
San Francisco442650
Ventura424653
San Mateo3949112
Santa Barbara393131
Marin343430
Kings289839
Monterey254018
Solano207528
Merced188412
Sonoma165014
Placer105511
San Luis Obispo9054
Madera8938
Yolo83928
Santa Cruz5683
Napa4774
Sutter3724
Butte3384
San Benito3362
El Dorado3070
Lassen2750
Shasta1876
Yuba1803
Humboldt1654
Glenn1640
Nevada1631
Colusa1130
Mendocino1130
Lake1081
Tehama1041
Calaveras670
Tuolumne640
Del Norte600
Mono501
Siskiyou410
Amador400
Inyo341
Mariposa311
Plumas170
Alpine20
Trinity20
Sierra10
Unassigned00
Chico
Clear
73° wxIcon
Hi: 103° Lo: 68°
Feels Like: 73°
Oroville
Clear
79° wxIcon
Hi: 105° Lo: 68°
Feels Like: 79°
Paradise
Clear
73° wxIcon
Hi: 96° Lo: 69°
Feels Like: 73°
Chester
Clear
49° wxIcon
Hi: 87° Lo: 56°
Feels Like: 49°
Red Bluff
Clear
73° wxIcon
Hi: 105° Lo: 71°
Feels Like: 73°
Willows
Clear
73° wxIcon
Hi: 107° Lo: 65°
Feels Like: 73°
There is a Red Flag Warning in Modoc county today and tomorrow with temperatures getting as hot as 110 degrees for some in the Valley by Wednesday.
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