Business live: Wall Street banks warn of market correction
The benchmark Brent crude futures contract is down 0.28 per cent to $68.57 a barrel this morning, its lowest level in a week.
India is the biggest buyer of seaborne Russian crude. Trump wants the country to stop buying Russian oil as Washington seeks ways to push Moscow for a peace deal with Ukraine. He is threatening to impose 100 per cent secondary tariffs on buyers of Russian crude.
Trump wrote on Truth Social: 'India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don't care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA.'
Some Wall Street banks are warning clients to prepare for a market pullback, even as Wall Street indices rebounded from last week's sell-off.
Morgan Stanley, Deutsche Bank and Evercore all cautioned that the S&P 500 index is due for a near-term drop due to the fallout from President Trump's trade war, including slowing consumer spending, weaker economic growth, higher unemployment and potentially rising inflation.
Mike Wilson, the Morgan Stanley strategist, forecasts a correction of up to 10 per cent this quarter, while Evercore's Julian Emanuel is expecting as much as 15 per cent.
For now stock markets seem unfazed. Shares in Asia rose for a second day. Japan's Nikkei gained 0.6 per cent, supported by data showing a jump in the nation's service sector activity in July. Meanwhile, mainland China's SSE Composite gained 0.5 per cent after services activity expanded at its fastest pace in 14 months in July.
The FTSE 100 is forecast to open 30 points higher when trading begins.
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