Business Corpus: Stocks Tumble With Oil On Renewed Trade-War Worry: Markets WrapGlobal equities tumbled and Treasury futures climbed after President Donald Trump’s threat to increase tariffs on Chinese imports. The post Stocks Tumble With Oil On Renewed Trade-War Worry: Markets Wrap appeared first on Investor's Business Daily.

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Global equities tumbled and Treasury futures climbed after President Donald Trump's threat to increase tariffs on Chinese imports called into question whether the next round of trade talks this week will be delayed. The yuan slumped alongside crude oil.

Futures on the S&P 500 Index sank as much as 2.2 percent, signaling a punishing start to the week on Wall Street, while European stocks slid and Chinese equities plunged on Trump's plan to hike tariffs on Friday and following news that China is considering delaying the upcoming talks. The benchmark index in Shanghai tumbled as much as 6.6 percent, with the government in Beijing said to have called on its " National Team" of state investors to prepare to stabilize the market if needed. The yen rallied and the Aussie dropped. The cash market for Treasuries was closed due to holidays in Tokyo and London.

Seeking to ramp up pressure on China for more concessions, Trump threatened to more than double tariffs on $200 billion of Chinese goods, and impose a fresh round of duties on top of that. Chinese Vice-Premier Liu He was scheduled to arrive in Washington Wednesday with a delegation of about 100, but now China is considering delaying that trip, according to people familiar with the matter. The South China Morning Post said a cancellation is also possible.

"It's making the outcomes more binary, with everybody focused on the Friday deadline -- there doesn't seem to be much leeway now to much go past that," Joyce Chang, chair of global research at JPMorgan Chase & Co (JPM)., said on Bloomberg Television. "It's going to mean that investors will be very focused on the trade issues even beyond China," with a review of U.S. auto-import tariffs still pending, she said.

Adding to the mix, North Korea carried out a weapons test that potentially included its first ballistic missile launch since 2017, challenging Trump's bottom line in nuclear talks.

In commodities markets, West Texas Intermediate crude futures declined as much as 3.1 percent. Saudi Arabia cut June pricing for all crude grades to the U.S. in a move that appeared to be aimed at easing concern over supplies.

Elsewhere, the lira weakened past six per U.S. dollar, touching its lowest level in seven months.

Here are some notable events coming up:

Chinese Vice Premier Liu He is scheduled to return to Washington for trade talks on Wednesday, though the schedule may now be in flux. The Reserve Bank of Australia meets to set interest rates Tuesday, while New Zealand central bank does the same the following day. China releases trade data Wednesday, and the U.S. does so on Thursday. South Africa holds national elections Wednesday. China reports on inflation Thursday. The U.S. releases the April CPI report Friday.

These are the main moves in markets:

Stocks

The Stoxx Europe 600 Index dropped 1.3 percent as of 8:05 a.m. London time on the largest tumble in 12 weeks. Futures on the S&P 500 Index sank 1.8 percent. The Shanghai Composite Index sank 5.6 percent and the largest fall in more than three years. Hong Kong's Hang Seng Index sank 3.3 percent on the biggest tumble in almost seven months.

Currencies

The Bloomberg Dollar Spot Index gained 0.3 percent, the largest rise in more than a week. The Japanese yen advanced 0.4 percent to 110.65 per dollar on the biggest gain in more than a week. The euro fell 0.1 percent to $1.1193. The British pound decreased 0.4 percent to $1.3125, the biggest dip in more than two weeks.

Bonds

Germany's 10-year yield fell three basis points to -0.01 percent on the largest drop in more than a week. France's 10-year yield declined two basis points to 0.348 percent on the biggest drop in more than a week. Australia's 10-year yield declined five basis points to 1.7395 percent.

Commodities

Iron ore dipped 1 percent to $93.26 per metric ton, the first retreat in more than a week. The S&P GSCI Spot Index of commodities sank 1.7 percent on the largest tumble in more than two months. West Texas Intermediate crude fell 2.5 percent to $60.34 a barrel.

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