BREAKING NEWS First case of UK COVID-19 variant found in Oregon Full Story

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."

Before the Bell newsletter: Key market news. In your inbox. Subscribe now

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.

Markets Now newsletter: Get a global markets snapshot in your inbox every afternoon. Sign up now!

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

Oregon Coronavirus Cases

Data is updated nightly.

Cases: 131258

Reported Deaths: 1758
CountyCasesDeaths
Multnomah28030454
Washington18386166
Marion15972233
Clackamas11499135
Lane8127107
Jackson680682
Umatilla664167
Deschutes484633
Yamhill313945
Malheur311851
Linn306542
Polk238938
Klamath236634
Josephine168931
Jefferson167525
Benton165913
Douglas165043
Union109516
Wasco105123
Columbia101518
Lincoln97317
Hood River93521
Coos92614
Morrow91910
Clatsop6614
Crook5859
Baker5515
Tillamook3572
Curry3175
Lake2285
Grant2131
Harney1684
Wallowa943
Gilliam471
Sherman470
Wheeler191
Unassigned00
Eugene
Cloudy
46° wxIcon
Hi: 51° Lo: 45°
Feels Like: 44°
Corvallis
Cloudy
45° wxIcon
Hi: 45° Lo: 42°
Feels Like: 40°
Roseburg
Partly Cloudy
48° wxIcon
Hi: 58° Lo: 46°
Feels Like: 48°
North Bend
Mostly Cloudy
47° wxIcon
Hi: 57° Lo: 46°
Feels Like: 45°
KEZI Radar
KEZI Temperatures
KEZI Planner

LATEST FORECAST

Community Events