BEFORE THE BELL: Chinese trade sanctions worrying investors; Facebook shares slip further despite Zuckerberg apology
The threat of stronger US trade sanctions against China is ruffling investor feathers. Traders expect to see a dip in the Dow today ahead of an announcement of $60 billion in sanctions against Chinese imports which will affect the electronic and telecom industries. This led to a 1 per cent drop in the Chinese and Hong Kong markets overnight, which offset a one per cent gain in the Nikkei. Chinese officials are still hoping to negotiate a win-win solution with the US to avoid a trade war situation.
Despite an apology from Facebook CEO Mark Zuckerberg, the company is still bleeding out as shares drop two per cent lower this morning. Zuckerberg’s long awaited apology on user data breaches comes after the company has reportedly lost $50 billion in market cap.
Across the border the Loonie continues to surge as it comes back from a hefty drop that started last week. The Canadian currency is gaining to 77.70 cents US.
Oil has dropped slightly to 64.89 a barrel.
Gold is up to 1,329 an ounce.