Currencies News

Trade Conflict Still Going On- Dow Faces Loss

Wall Street’s trade conflict anxiety is not going away. The Dow dropped 391 factors, or 1.5%, on Monday afternoon. The S&P 500 and Nasdaq misplaced 1.2% apiece. Treasury bond yields as soon as once more fell sharply as traders piled into protected assets.

The turmoil comes as buyers brace for the US-China trade war to deal more injury to the global economy. The chance is that the tit-for-tat tariff battle between the world’s two largest economies might flip the financial slowdown into a recession.

China-sensitive shares together with Caterpillar (CAT), Deere (DE), and Boeing (BA) all declined greater than 1%. Goldman Sachs raised its estimate of how a lot the commerce battle will damage the economy. The agency now expects fourth-quarter US development to be gradual to 1.8%, in contrast with 2% beforehand.

The iShares MSCI Hong Kong ETF (EWH) tumbled 3% on Monday, leaving the fund down 13% up to now this quarter. Argentina’s market additionally discovered political fears. The peso plunged more than 15% towards the US dollar on worries that populists will substitute Argentina’s business-friendly authorities.

Nervous buyers proceed to seek shelter in safe havens. Gold climbed again above $1,500 an ounce on Monday. The push into extremely-secure authorities bonds has precipitated Treasury yields to break down. The 10-year Treasury rate tumbled under 1.7% on Monday, a pointy slide from 3.2% last fall.

The plunge in bond yields will additional strain lending income at banks, which generate profits on the distinction between quick and long-term rates. Citigroup (C), Morgan Stanley (MS) and Goldman Sachs (GS) fell about 3% apiece. US shares declined last week for the second week in a row. The S&P 500 is now sitting about 5% under the all-time highs set in late July prior to the outbreak in commerce tensions.

Nina Sanders

By Nina Sanders

Nina is the lead of the Currency column. She had joined the group as a part-time writer in 2006, covering the stock market, startups, earnings, and economy. Nina completed her Bachelors of Arts degree from the University of California specializing in Journalism and Geography.

Leave a Reply

Your email address will not be published. Required fields are marked *