Home Markets Trade Tumults Make Stocks Slip, Bonds Steady

Trade Tumults Make Stocks Slip, Bonds Steady

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Due to President Donald Trump’s actions, the trade war is now more prominent than ever. The stocks of the United States slipped, the dollar is steady, and there are lower treasuries.

 

President Trump recently stated that the meetings scheduled for the next month have a possibility of cancellation, which led to the 1.3% decrease in the S&P 500 Index. There are talks that the United States is not in any way interested in doing transactions with the leading Chinese telecommunications firm, Huawei. In line with this, there is 1.74% increase in the Treasury yield.

 

On Monday, China’s currency devaluation caused a rout–the biggest of the year. As the week progressed, there was a stop to the three-day rally, which led to a closing of 0.5%. In conclusion, chipmakers are one of the worst performers.

 

Investors are currently having a difficult time gauging the possible outcomes of the United States-China showdown, as well as its impact on asset prices. Current events affect the market volatility because of the traders who continuously try to see into the future regarding corporate profits, interest rates, and economic growth.

 

In addition to the current showdown, here are additional updates:

 

  • The Japanese Yen gained and increased.
  • The Chinese Yuan weakened.
  • Oil trades jumped.
  • Gold is at $1,500 per ounce.
  • Bonds tumbled in Italy amidst the government disagreement.
  • There is a possibility of snap elections in Italy due to the coalition, as mentioned above.
  • There is a significant decline in the Stoxx Europe (this is their second weekly decrease).
  • Britain’s pound weakened due to economic shrinkage.
  • Stocks in Asia increased.
  • Shares of Hongkong decreased.

 

Also, here are the significant moves noted in the market: 

 

Stocks

  • A 0.7% decrease in the S&P 500 Index on the brink of trading New York.
  • A 0.8% decrease in Stoxx Europe.
  • A 2.5% decrease in FTSE MIB in Italy.
  • A 0.2% increase in the MSCI Asia Pacific Index.

 

Currencies

  • Minimal changes in the Bloomberg Dollar Spot Index.
  • The Yuan is now 7.0623 per dollar.
  • The Euro increased by 2%.
  • The Yen increased by 0.4%, making it to 105.61 per dollar.
  • The Pound declined by 0.9%.

 

Bonds

  • An increase in the ten-year treasuries to 1.74%.
  • Italy rose to 1.8%.
  • Germany declined to -0.58%.

 

Commodities

  • Gold is $1,498.07 an ounce.
  • Texas crude is $54.39 a barrel.
  • Copper is $2.594 a pound.