US stocks are falling Monday morning following losses in Europe and Asia, and technology companies are skidding after The Wall Street Journal reported that the Trump administration plans to limit high-tech exports to China and will limit Chinese investment in American technology companies. "The combination of interest rates and trade wars are at the top of the list", said Oliver Pursche, chief market strategist at Bruderman Asset Management in NY, referring to the U.S. Federal Reserve's decision earlier in June to rate interest rates.
The market recovered from its lows after Peter Navarro, one of President Donald Trump's top trade advisers, told CNBC there was no plan for investment restrictions and that the administration's probe into alleged technology theft is limited to China.
Wall Street closed sharply lower on Monday, with the S&P 500 and Nasdaq staging their steepest losses in more than two months, amid an escalating trade dispute between the USA and other leading economies.
Germany's DAX was flat at 12,270 and France's CAC 40 added 0.3 percent to 5,298. The S&P 500 index was down 30.99 points to 2,723.89 and the Nasdaq composite index was down 133.98 points to 7,558.84. S&P 500 e-minis were down 13 points, or 0.47 percent and Nasdaq 100 e-minis were down 53.75 points, or 0.74 percent. Australia's S&P/ASX 200 dipped 0.2 percent to 6,197.60.
Harley-Davidson fell 6 percent after it said it will start building some motorcycles bound for Europe in factories overseas in response to tariffs by the EU.
TRADE TENSIONS: U.S. efforts to secure advantages in trade are seeing some hit back. In less than two weeks, tariffs imposed by the USA and China on each other will also kick in. Harley-Davidson shares plunged 6.0 percent to $41.57 on Monday.More news: 'Bowie Bonds' creator sues Ed Sheeran for copying Marvin Gaye hit
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Trump, last week, threatened to impose a 20 percent tariff on all European Union vehicle imports. He's also pressuring China to buy more USA -made goods. The S&P 500 index lost 14 points or 0.5 percent to 2,740, and the Nasdaq fell 58 points or 0.8 percent to 7,636.
ANALYST'S TAKE: "Fears that China may pull investments in USA tech firms have caused a broad drawback".
Brent crude prices fell about 1.7 percent as investors prepared for an extra 1 million barrels per day in output to hit the markets after OPEC and its partners agreed to raise production. But investors aren't sure if the cartel will carry it out.
ENERGY: Benchmark U.S. crude was down 2 cents to $68.06 per barrel in NY. Brent crude, used to price global oils, dropped 1.1% 74.73 dollars (£56.27) per barrel in London. It dipped 0.7 percent to settle at $68.08 per barrel on Monday.
The Canadian dollar was trading at 75.12 cents U.S., down from Monday's average value of 75.17 cents US. The euro weakened to $1.1675 from $1.1704.