The US share market declined on Tuesday, partly reflecting a negative reaction to a Conference Board report showing a substantial deterioration in U.S. consumer confidence in the month of June. Additional selling pressure was generated in reaction to comments from the U.S. Federal Reserve Chairman Jerome Powell that the U.S. central bank is assessing whether current economic uncertainties call for lower rates, but noted the Fed will take a wait-and-see approach given how rapid recent economic changes have been. On the Wall Street, Dow Jones Industrial Average ended about 179 points lower at 26,548.22. The S&P 500 also closed approximately 0.95% lower at 2,917.38, while the Nasdaq Composite fell 1.51% to close at around 7,884.72.
Meanwhile, investors looked toward developments on the U.S.-China trade front, with Presidents Donald Trump and Xi Jinping set to meet at the G-20 summit later this week. The two leaders are expected to discuss the protracted trade fight between their two countries.
China and the U.S. have already slapped tariffs on billions of dollars worth of each other's goods over the past year. In May, the two economic powerhouses hiked tariffs targeting some goods. The Trump administration has said previously that Trump is ready to raise tariffs on all Chinese imports into the U.S. if the two countries fail to arrive at a deal.
Market expectations for a meaningful breakthrough being achieved in U.S.-China trade talks are quite low, so any signs of an improvement could bode well for risk sentiment.
CURRENCY NEWS: Japanese yen, often seen as a safe-haven currency, was steady against greenback on Wednesday. The Japanese yen traded at 107.16 against the dollar after touching levels below 107.1 in the previous session.
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