US equity-index futures retreated and the dollar strengthened after President Donald Trump ratcheted up trade tensions yet again by suggesting higher tariff rates on most trading partners.
Contracts for the S&P 500 fell 0.3% and a gauge of the dollar rose 0.2% after Trump said Thursday he plans to impose blanket levies of 15% or 20%. The current blanket tariff rate is 10%.
The Canadian dollar weakened after Trump said he will impose 35% levy on some goods from the country. Gold rose for a third day and Treasuries edged lower.
Trump is also planning to make a “major statement” on Russia and is mulling the use of sanctions.
Asian equities advanced 0.4% as Hong Kong stocks jumped 1.9%. Goldman Sachs Group Inc. strategists raised their forecast for Asia ex-Japan stocks, citing a more favorable macro environment and lower tariff risk.
“The latest news of a higher tariff rate on Canada and potentially others as well has seen risk getting pared back,” said Khoon Goh, head of Asia research at Australia and New Zealand Banking Group Ltd.
