U.S. stocks fell sharply led by declines in technology shares as China instituted tariffs in response to American impositions and trade rhetoric from the White House.
The S&P 500 Index fell for the sixth session in eight and entered a correction more than 10 percent below its January all-time high. The Dow was trading more than 600 points lower in mid-afternoon action as both indexes had broken through important technical supports.
Since their all-time record closes on January 26th, the Dow at 26,616 and the S&P at 2,872, the Dow has shed 11.7 percent (23,495, 1:45 pm ET) and the wider S&P has lost 10.6 percent (2,569, 1:51 pm ET).
Asian equities lost ground late in their session after having opened higher. Most European markets are closed for the Easter Monday holiday.
China announced tariffs Monday on more than 100 U.S. goods in retaliation for President Trump's duties on imported steel and aluminum.
Despite the losses in U.S. and global equities currency markets have been relatively quite.
In the same two month period that has pummeled stocks the euro has barely stirred against the dollar with an absolute range of four figures (1.2153-1.2555) and the bulk of trading contained within a figure on either side of 1.2345. On January 26th the day that U.S equities closed at their all time highs, the euro finished at 1.2419. In Monday afternoon action the united currency was exchanging at 1.2304, barley a figure lower.
On January 26th the Dollar Index (DXY) ended at 89.067. On Monday the range to 3 pm was 89.822 to 90.154. The sterling finished on the 26th at 1.4107 at 3 pm it held at 1.4040 against the dollar.
In Asian currencies the picture is mixed. The dollar has lost ground versus the yen (108.70-105.85) but gained against the Australian Dollar (0.8109-0.7655) and the New Zealand Dollar (0.7353-0.7214).
Chief Market Strategist