Asian stocks follow Wall Street lower on trade war jitters

Wall Street set to open lower as trade war stokes fears of recession

Wall Street set to open lower as trade war stokes fears of recession

The worsening state of the trade war between US and China weighed heavily on sentiments of Wall Street investors, who fled stocks Monday sending the Dow Jones Industrial Average plunging 391 points, or 1.49%, to 25,896.44.

All three major USA stock indexes started the week in the red, with few earnings reports and no economic data to soothe market jitters over protests in Hong Kong, the rejection of Argentine President Mauricio Macri's economic agenda in primary elections, and a tariff dispute that has beleaguered markets for months.

"Singapore's sobering downward assessment of 2019 growth outlook is a perhaps the most telling sign that the world is now bracing for [the] worse, even as it hopes for [the] better", Vishnu Varathan, the head of economics and strategy at Mizuho Bank, wrote in a note.

Trading closed Monday with the Dow Jones Industrial Average falling 391 points and the S&P 500 down by 35.96 points.

The Nasdaq composite dropped 95.73, or 1.2%, to 7,863.41. Treasury bond yields once again fell sharply as investors piled into safe assets.

Hong Kong's Hang Seng sank as protesters crowded into Chek Lap Kok airport.

Coach owner Tapestry Inc and Versace owner Capri dropped 4.1% and 4.3%, respectively, after Chinese social media took the companies to talks for selling T-shirts that showed Chinese-controlled territories of Hong Kong and Macau as countries.

The Stoxx Europe 600 Index fell for a third day, dragged down by industrial and banking shares, while contracts on the three major US equity indexes swung between gains and losses.

Every sector within the S&P 500 declined on Monday.

"The growth prospects of key emerging markets and developing economies ... and China have worsened, partly due to the escalation of the US-China trade conflict in recent months", the Ministry of Trade and Industry said.

The S&P 500 Index rose 1.6% as of 2:20 p.m.

During the past month, the rhetoric from Beijing and Washington has increased after US President Donald Trump slapped 10% tariffs on Chinese imports worth another US$300 billion.

Nervous investors continue to seek shelter in safe havens.

"It's a number of different things that's weighing on sentiment today, it's a mix of everything", said David Madden, analyst at CMC Markets in London.

Milan-listed shares were down 0.7 percent, hitting their lowest since June as right-wing League leader Matteo Salvini's drive for early elections hit a road bump with parliamentary leaders failing to decide when the Senate should debate his no-confidence motion.

Shares of Cathay Pacific slid as much as 4.9% to a decade low on Monday after China demanded the airline prevent protesting employees from flying to the mainland.

Traders were also on edge after market-friendly Argentine President Mauricio Macri suffered a mauling in presidential primaries, increasing the risk of a return to interventionist economic policies.

Corporate news was light as the second-quarter earnings season draws to a close.

Shares in Viacom and CBS fell amid published reports suggesting the entertainment companies are close to a merger deal.

Real estate and utilities stocks posted the smallest declines.

Benchmark US crude lost 13 cents to $54.80 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude oil, the global standard, added 4 cents to close at $58.57 a barrel. Brent crude, used to price global oils, declined 19 cents to $58.38 per barrel in London. The market mood has been hit by steep losses in the previous session.

The dollar was flat and the yen little changed. The euro declined to $1.1188 from $1.1214.

Notícias recomendadas

  • Shootout kills California officer, suspect

    Shootout kills California officer, suspect

    The two surviving officers are in critical and serious condition, respectively, Riverside Police Officer Ryan Railsback said. Debbie Howard, Moye's stepmother, told reporters she texted him when she happened to see numerous squad cars speed past her.
    Qatar condemns shooting attack inside mosque in Norway

    Qatar condemns shooting attack inside mosque in Norway

    Police also charged the suspect with murder after his 17-year-old stepsister was found dead in a separate location. One suspect is in custody after the shooting Saturday at the Al-Noor Islamic Center in the Oslo suburb of Baerum.
    400-billion-USD investment needed in Australian infrastructure: gov't report

    400-billion-USD investment needed in Australian infrastructure: gov't report

    Public transport crowding is also on track to increase fivefold over the same period, costing more than $800m a year. But Labor leader Anthony Albanese accused the coalition of ripping the "guts" out of infrastructure funding in 2014.
  • Consumer Inflation Eases To 3.15% In July

    Consumer Inflation Eases To 3.15% In July

    Tariffs on a wide range of consumer products imported from China, set to take effect September 1, may boost inflation further. The 2.2 per cent annual gain in the core CPI followed 2.1 per cent in June and marked the fastest increase since January.
    USA  postpones tariffs on some Chinese products, including cell phones & laptops

    USA postpones tariffs on some Chinese products, including cell phones & laptops

    The delay in the tariffs that had been scheduled to start next month provides some relief to retailers. Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., August 12, 2019.
    North Korea says latest test was 'new weapon'

    North Korea says latest test was 'new weapon'

    The official Rodong Sinmun newspaper carried several photos showing a broadly grinning Kim surrounded by his aides as he observed the test.
  • DJI's foldable Osmo Mobile 3 could be the best smartphone gimbal

    DJI's foldable Osmo Mobile 3 could be the best smartphone gimbal

    The ActiveTrack mode, activated by tapping the trigger once, will track the subject and keep them centered in the frame. Additionally, HyperLapse not only supports real-time Electronic Image Stabilization (EIS) but also ActiveTrack 3 .0.
    Cristiano Ronaldo explains what separates his career from Lionel Messi’s

    Cristiano Ronaldo explains what separates his career from Lionel Messi’s

    I already had great respect for him, but after being my coach I became an even greater fan of Zidane". I do not need money any more, thank God.
    A quick look at Mariners’ tentative 2020 schedule

    A quick look at Mariners’ tentative 2020 schedule

    The 2020 Major League Baseball schedule was released on Monday , with the first day of games scheduled for March 26. The 2020 schedule is out and the Minnesota Twins will open on the road in Oakland.
  • South Africa targeted in North Korean cyber attack

    South Africa targeted in North Korean cyber attack

    Ten of the 35 attacks were on South Korean targets with India suffering three while Bangladesh and Chile had two apiece. Cryptocurrency exchanges were repeatedly attacked, with at least four hits on South Korea's Bithumb .
    Date set for major court showdown over no-deal Brexit

    Date set for major court showdown over no-deal Brexit

    Anti-Brexit campaigners have chosen to use the Scottish courts to hear their case because it sits throughout the summer period. Meanwhile a report by The Institute for Government (IFG) said MPs may have limited opportunities to stop a no deal Brexit.

    United Kingdom to Release Iranian Oil Tanker Soon

    The British Foreign Office are yet to respond to Eslami's comments concerning a potential release of Iran's oil tanker. Quoting Gibraltar authorities, the semi-official FARS news agency said the ship will be released by Tuesday evening.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.