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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.

Cases: 488170

Reported Deaths: 6602
CountyCasesDeaths
Hennepin1012851589
Ramsey43273808
Dakota36543394
Anoka33430390
Washington22183261
Stearns18786202
St. Louis14866265
Scott13381107
Wright12580116
Olmsted1184890
Sherburne877174
Carver783241
Clay694587
Rice672291
Blue Earth599635
Kandiyohi580674
Crow Wing522782
Chisago501045
Otter Tail485570
Benton449290
Winona420049
Mower410031
Douglas393768
Goodhue388069
Nobles387147
Polk344663
McLeod340550
Beltrami338751
Morrison326247
Itasca314246
Becker313942
Lyon313844
Isanti308256
Steele303011
Carlton300249
Freeborn285824
Pine282616
Nicollet261541
Todd249230
Brown247237
Le Sueur237420
Mille Lacs229047
Cass221024
Waseca210117
Meeker208134
Martin190629
Wabasha18713
Roseau180917
Hubbard160741
Houston158114
Dodge15384
Renville151640
Redwood147127
Fillmore13908
Pennington137716
Chippewa136835
Cottonwood135920
Wadena131320
Faribault124517
Aitkin119233
Watonwan11798
Sibley117610
Rock116114
Kanabec108119
Pipestone101824
Yellow Medicine97717
Murray9538
Jackson94210
Swift87818
Pope8095
Marshall78415
Stevens7468
Lake74218
Clearwater71914
Lac qui Parle68616
Wilkin67711
Koochiching62111
Big Stone5163
Lincoln5122
Grant4918
Norman4788
Unassigned44768
Mahnomen4437
Kittson40921
Red Lake3615
Traverse3105
Lake of the Woods2221
Cook1180

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 336947

Reported Deaths: 5491
CountyCasesDeaths
Polk51993559
Linn19497317
Scott17149212
Black Hawk14956293
Woodbury13828214
Johnson1314875
Dubuque12444195
Dallas1021893
Pottawattamie9877146
Story963545
Warren514076
Clinton502184
Cerro Gordo500683
Webster495588
Sioux479869
Marshall464273
Des Moines427961
Muscatine425693
Buena Vista412637
Wapello4042110
Jasper387267
Plymouth368578
Lee354453
Marion341171
Jones285055
Henry279837
Bremer270255
Carroll266649
Crawford253535
Boone244030
Benton240854
Washington239247
Mahaska215746
Jackson209939
Dickinson204140
Tama202865
Kossuth198655
Delaware186140
Clay184425
Winneshiek183228
Fayette179235
Page177919
Buchanan177829
Wright174231
Hamilton173842
Cedar172723
Hardin169839
Harrison167670
Clayton160154
Butler159231
Mills148420
Floyd148141
Poweshiek148030
Cherokee146236
Lyon145541
Allamakee144148
Madison143018
Iowa140323
Hancock138030
Grundy132230
Winnebago130531
Calhoun129411
Cass129251
Jefferson128634
Appanoose123347
Louisa122444
Mitchell120540
Chickasaw119915
Union119131
Sac118718
Shelby117433
Emmet115440
Humboldt113725
Guthrie109628
Franklin109219
Palo Alto101321
Howard99522
Montgomery96936
Clarke95020
Keokuk92529
Monroe89828
Adair81529
Ida81532
Pocahontas80919
Davis76523
Monona76427
Greene73110
Lucas72121
Osceola68315
Worth6678
Unassigned6590
Taylor64112
Decatur5699
Fremont5599
Van Buren53718
Ringgold50620
Audubon4769
Wayne47121
Adams3184
Rochester/St. Mary'S
Clear
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Feels Like: 30°
Mason City
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Hi: 48° Lo: 28°
Feels Like: 28°
Albert Lea
Partly Cloudy
36° wxIcon
Hi: 47° Lo: 27°
Feels Like: 30°
Austin
Partly Cloudy
34° wxIcon
Hi: 47° Lo: 26°
Feels Like: 30°
Charles City
Partly Cloudy
34° wxIcon
Hi: 47° Lo: 29°
Feels Like: 26°
Winds will pick up for Sunday
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