A fresh storm is set to hit the markets, and it’s not Hurricane Florence but President Trump’s fresh round of tariffs. US major indexes fell on Monday after President Trump announced on US-China trade will be coming after the close. The Nasdaq felt the brunt of the sell-off as tech shares pressured the broader market as declines in some of the big players saw the index fall a heavy 1.43% - Amazon shares fell 3.15% on the back of a Citi analyst suggested the company should split in two to avoid regulatory pressures from the Trump administration, whilst Netflix slumped 3.90%. Twitter shares dropped 4.2% after a broker reiterated its sell rating on the stock.
Apple shares declined 2.66% amid fears that it could be caught in the middle on a trade war between China and the US as China is one of Apple’s biggest markets. Speaking of getting stuck in the middle of a trade war, we have seen extended weakness in the Australian dollar against the US dollar. As one Australia is one of China largest trading partners, the recent news about the trade riff has caused the Australian dollar to fall from its 3 month high of 0.7673 to as low as 0.7085. Currently the currency pair is trading at 0.7149 after briefly rallying from the yearly low.
Standing out form the rest, Express Scripts shares rose 3.71% after the US. Department of Justice cleared Cigna’s $52 million acquisition of the company after shareholders last month voted to approve the merger.
In after hours trading, we saw earnings reported by FedEx and Oracle Corp. Oracle shares fell more than 3% as the company reported earnings per share at 71 cents beating estimates of 69 cents, however missed revenue estimates reporting at $9.2 billion vs. $9.28 billion. FedEx shares fell more than 2.5% after the final bell as missing on earnings per shares estimates ($3.36 vs. $3.81), however beat on revenue ($17.05 billion vs. $16.88 billion).
In currency markets, the euro was up 0.49% against the US dollar at $1.1685 and sterling was 0.72% higher after increased optimism over prospects for a Brexit deal with the European Union. Emerging markets were again under pressure as the MSCI’s index was down 0.21% after falling as much as 0.4% earlier in the day.
Chart of the Day: Amazon Inc (AMZN) Daily Chart