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.

Cases: 3235045

Reported Deaths: 38268
CountyCasesDeaths
Los Angeles108548815614
San Bernardino2685421719
Riverside2668492970
Orange2391752768
San Diego2300662421
Santa Clara991741278
Kern91119591
Fresno863361084
Sacramento846531194
Alameda71298906
Ventura67066546
San Joaquin60545844
Contra Costa55593492
Stanislaus49500803
Tulare43574542
Monterey38434261
San Mateo34510356
San Francisco30734293
Santa Barbara27149267
Solano27141118
Imperial25745510
Merced25743332
Sonoma25160251
Kings20223161
Placer18034188
San Luis Obispo17151161
Madera14068175
Santa Cruz13088136
Marin12067166
Yolo11276146
Shasta10144132
Butte9865136
El Dorado824566
Sutter812984
Napa807050
Lassen530916
San Benito523851
Yuba522730
Tehama456446
Tuolumne351241
Nevada339473
Mendocino332236
Amador307433
Lake272932
Humboldt265227
Glenn202822
Colusa19079
Calaveras171323
Siskiyou150413
Mono11454
Inyo105329
Del Norte8783
Plumas6185
Modoc3924
Mariposa3575
Trinity3065
Sierra950
Alpine740
Unassigned00
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The first wave of rain, snow and wind has moved over California, but many more chances for rain, snow and gusty wind are in our short term and long term forecast. After a relatively quiet evening, we can expect more rain and snow starting early Thursday morning.
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