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 12:51 PM
Updated: May 30, 2018 12:51 PM

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

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 115407

Reported Deaths: 3566
CountyConfirmedDeaths
Marion21196765
Lake10493323
Elkhart6528110
St. Joseph6392106
Allen6178202
Hamilton4848109
Vanderburgh360930
Hendricks2715123
Monroe256036
Tippecanoe239113
Johnson2305123
Clark221457
Porter213647
Delaware194262
Cass19419
Vigo182526
Madison164375
LaPorte142340
Floyd135862
Howard130563
Warrick128038
Kosciusko121617
Bartholomew116457
Marshall100824
Dubois96919
Boone96846
Hancock92143
Grant91934
Noble90832
Henry79826
Wayne75414
Jackson7499
Morgan71638
Shelby67229
Daviess66328
Dearborn66028
LaGrange63411
Clinton59914
Harrison57624
Putnam56412
Knox5159
Gibson5114
Lawrence51129
Montgomery50821
White48514
DeKalb47611
Decatur45839
Miami4353
Greene42435
Fayette42113
Jasper3942
Steuben3807
Scott37311
Sullivan33712
Posey3240
Jennings31312
Franklin30725
Clay3005
Ripley2968
Orange28824
Carroll27413
Whitley2707
Washington2651
Wabash2648
Starke2637
Adams2613
Wells2614
Jefferson2483
Spencer2413
Fulton2382
Huntington2363
Tipton22622
Perry22113
Randolph2167
Jay1800
Newton17311
Owen1681
Martin1640
Rush1554
Pike1471
Vermillion1280
Fountain1232
Blackford1193
Pulaski1131
Crawford1050
Brown1043
Parke962
Benton880
Ohio787
Union780
Switzerland690
Warren391
Unassigned0226

Ohio Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 148894

Reported Deaths: 4734
CountyConfirmedDeaths
Franklin26704607
Cuyahoga17375656
Hamilton13036315
Montgomery7755162
Lucas7280364
Butler5933111
Summit5265252
Marion308847
Mahoning3053281
Warren302349
Stark2838175
Pickaway264344
Lorain230786
Delaware223120
Fairfield208753
Columbiana192980
Licking191063
Trumbull1883132
Wood184172
Clark179440
Clermont170723
Lake161951
Medina146039
Greene144432
Allen143069
Miami142851
Portage113266
Mercer111918
Erie93546
Tuscarawas93020
Wayne92767
Ross87924
Richland86119
Madison81512
Darke79942
Belmont71827
Geauga71349
Hancock69510
Athens6692
Ashtabula65748
Lawrence65322
Shelby62510
Auglaize5979
Putnam58523
Sandusky56320
Huron5427
Union5292
Scioto4986
Seneca47014
Ottawa46830
Preble43315
Muskingum4012
Holmes3859
Jefferson3364
Henry31213
Logan3093
Champaign3043
Perry2969
Clinton29413
Defiance28911
Brown2882
Knox28415
Washington26023
Morrow2572
Hardin25213
Jackson2506
Fulton2411
Ashland2374
Crawford2366
Coshocton23411
Fayette2306
Highland2273
Wyandot21012
Williams2073
Gallia18913
Pike1840
Meigs17410
Guernsey1698
Hocking1639
Carroll1527
Adams1294
Van Wert1173
Monroe11018
Paulding1080
Harrison633
Morgan470
Vinton473
Noble280
Unassigned00
Fort Wayne
Clear
66° wxIcon
Hi: 80° Lo: 62°
Feels Like: 66°
Angola
Clear
64° wxIcon
Hi: 80° Lo: 62°
Feels Like: 64°
Huntington
Overcast
62° wxIcon
Hi: 80° Lo: 62°
Feels Like: 62°
Decatur
Clear
64° wxIcon
Hi: 81° Lo: 62°
Feels Like: 64°
Van Wert
Clear
64° wxIcon
Hi: 81° Lo: 61°
Feels Like: 64°
Warm, Summer-Like Weekend
WFFT Radar
WFFT Temperatures
WFFT National

Community Events