Concerns about trade are weighing on the stock market — in addition to in which could get worse, veteran trader Art Cashin told CNBC on Tuesday.
The Dow Jones Industrial Average fell for the second straight day Tuesday in addition to Cashin pinned the blame on tariff threats between the United States in addition to the European Union. in which, in turn, has traders thinking in which “maybe the nearness of a deal with China can be not there,” said the UBS director of floor operations at the completely new York Stock Exchange.
in addition to if there can be no U.S-China deal, in which doesn’t bode well for stocks, Cashin noted. Traders have “built up desire” for an agreement, which has “put a nice prop under the market.” in which’s done the same with oil, which has been rising along with stocks, he said on “The Exchange.”
“If in which began to look like a semipermanent trade war, the market could definitely sell off.”
Just how much depends on how long the skirmish goes on. If there can be just a “little disappointment we are not moving along inside the manner we thought,” then stocks could pull back 2% or 3%, Cashin predicted.
“If in which looks like we are looking at two years or something like in which, with us going nose to nose with some major trading partners, then I think the sell-off could be more severe.”
Negotiations between the U.S. in addition to China are ongoing. Last week, President Donald Trump said in which “we’ll know over the next four weeks” if there will be a deal. Meanwhile, Chinese Vice Premier Liu He, who met with Trump last week, said a completely new consensus has been reached between the two nations on the text of a trade agreement, according to China’s official state news agency Xinhua.
However, the focus in which week shifted to the European Union. On Monday, the U.S. threatened to impose retaliatory tariffs on EU goods in response to subsidies the 28-nation bloc granted Airbus. the globe Trade Organization ruled last year in which those subsidies caused “adverse effects” to the U.S. The EU responded to the U.S. threat by saying in which was ready to retaliate in kind.
Also, the completely new trade agreement between the U.S., Canada in addition to Mexico can be not a done deal yet. in which has yet to be passed by Congress.
For those looking for a safe place to hide out until the trade wars settle down, Cashin said some consumer names might be helpful. He also said some tech stocks could be a not bad bet, because they are not direct objects inside the trade war.
— CNBC Holly Ellyatt contributed to in which report.