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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 11:51 AM
Updated: May 30, 2018 11:51 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.

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

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 39133

Reported Deaths: 1514
CountyConfirmedDeaths
Hennepin12597787
Ramsey4963229
Dakota242192
Stearns241419
Anoka2266109
Nobles16726
Olmsted114715
Washington113740
Mower9602
Rice8488
Scott7624
Clay59138
Kandiyohi5781
Blue Earth4942
Wright4835
Todd4012
Carver3951
Lyon3272
Sherburne3255
Freeborn2970
Watonwan2380
Steele2371
Benton2203
St. Louis19615
Nicollet17312
Martin1715
Cottonwood1360
Goodhue1318
Winona12915
Crow Wing10812
Le Sueur1081
Pine1070
Chisago1021
Otter Tail1001
McLeod920
Dodge880
Carlton870
Unassigned8537
Polk822
Chippewa791
Isanti750
Waseca710
Douglas650
Murray650
Itasca6412
Meeker611
Morrison611
Faribault600
Pipestone592
Becker570
Jackson550
Sibley542
Pennington520
Renville362
Beltrami340
Brown342
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Wabasha330
Rock310
Fillmore300
Yellow Medicine300
Houston270
Swift221
Wilkin213
Norman200
Redwood190
Koochiching181
Grant170
Roseau170
Cass162
Aitkin150
Big Stone150
Kanabec151
Wadena150
Marshall120
Pope120
Lincoln100
Mahnomen101
Clearwater90
Hubbard80
Lake60
Stevens50
Traverse50
Lac qui Parle40
Red Lake40
Kittson20
Cook10
Lake of the Woods00

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 32064

Reported Deaths: 731
CountyConfirmedDeaths
Polk6739181
Woodbury326044
Black Hawk232358
Buena Vista171911
Johnson13408
Linn130482
Dallas129129
Marshall106019
Scott84510
Story8063
Pottawattamie74512
Dubuque74222
Wapello70830
Crawford6783
Muscatine64944
Sioux4810
Tama46829
Wright3851
Louisa36313
Jasper32517
Plymouth3245
Warren2911
Dickinson2663
Webster2484
Washington2459
Cerro Gordo1901
Hamilton1891
Boone1501
Clay1370
Allamakee1334
Clarke1333
Mahaska11717
Shelby1170
Clinton1131
Poweshiek1078
Carroll991
Pocahontas981
Bremer957
Franklin950
Des Moines912
Emmet870
Henry863
Cedar851
Hardin810
Taylor800
Monona770
Cherokee761
Floyd732
Marion710
Benton681
Guthrie684
Jones640
Sac640
Jefferson620
Osceola620
Buchanan601
Butler592
Hancock551
Humboldt551
Calhoun542
Harrison540
Lee542
Iowa530
Delaware511
Monroe517
Fayette500
Madison482
Lyon450
Clayton443
Davis411
Mitchell410
Palo Alto410
Grundy400
Mills390
Winneshiek390
Kossuth360
Howard340
Jackson340
Union340
Lucas314
Chickasaw290
Greene290
Winnebago290
Cass240
Ida230
Appanoose213
Keokuk211
Van Buren210
Page200
Worth200
Adair160
Audubon161
Unassigned160
Ringgold150
Decatur120
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Adams80
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