"China's Commerce Ministry said Tuesday it was banning dealings by Chinese companies with five subsidiaries of South Korean shipbuilder Hanwha Ocean, swiping at President Donald Trump's efforts to rebuild the industry in America. "China just weaponized shipbuilding," said Kun Cao, deputy chief executive at consulting firm Reddal. "Beijing is signaling it will hit third-country firms that help Washington counter China's maritime dominance.""
"South Korea and the U.S. have been building closer ties in shipbuilding in response to China's dominance as the world's largest shipbuilder. Hanwha acquired the Philly Shipyard in Pennsylvania last year and has contracts with the U.S. Navy to perform maintenance, repair and overhaul work for U.S. naval vessels. Hanwha Ocean's shares fell 5.8% in Seoul on Tuesday and the benchmark Kospi lost 0.6% to 3,561.81."
"U.S. markets slumped early Tuesday after Chinese sanctions against the U.S. subsidiaries of a major South Korean shipbuilder shook a fragile sense of calm over trade tensions with Washington. Futures for the S&P 500 lost 1% before the opening bell, while futures for the Dow Jones Industrial Average slid 0.6%. Nasdaq futures tumbled 1.3% as a broad of swath of technology companies saw their shares slide."
U.S. markets opened lower after China banned dealings by Chinese companies with five subsidiaries of South Korean shipbuilder Hanwha Ocean, fueling concerns about trade escalation. Futures for the S&P 500, Dow and Nasdaq fell, with technology stocks hit hardest. South Korea and the U.S. have strengthened shipbuilding ties in response to China's dominance; Hanwha acquired Philly Shipyard and holds U.S. Navy maintenance contracts. Hanwha Ocean shares fell 5.8% and the Kospi slid 0.6%. New reciprocal port fees between the U.S. and China went into effect, adding friction. Investors awaited Fed Chair Jerome Powell and major bank earnings, including JPMorgan.
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