Stocks slump and Treasuries gain as sell-off resumes at the start of U.S. trading - EntornoInteligente

Entornointeligente.com / Stocks slumped at the start of trading on Wall Street on Thursday, following European and Asian shares lower, as concern resurfaced that trade tensions between the world’s two largest economies are far from resolved. Oil slid as OPEC ministers met in Vienna.

The Dow Jones industrial average sank more than 400 points, while the S&P 500 resumed its slide after one of the biggest routs of the year. Trade tensions reignited after the arrest of the chief financial officer of tech giant Huawei Technologies Co. — dousing hope that China and the U.S. would make immediate progress on a deal. The yuan dropped the most since October. The start of the futures session was marred by a sudden and unexpected plunge that sent a shock wave across equity markets.

Advertisement “The biggest qualm is the trade war escalating, and this is haunting the markets,” Naeem Aslam, chief market analyst at Think Markets U.K. in London, said in an email. “It is arduous to find bulls in the market and it seems to me that this game is about to become uglier.”

Canada’s arrest of the Huawei CFO and reports that it may extradite her to the U.S. are a blow to already fragile sentiment, just days after an apparent breakthrough on trade between America and China.

“The arrest of the Huawei Technologies CFO gives no confidence that anything [President Trump] came back with after Saturday night’s dinner [with Chinese leader Xi Jinping in Buenos Aires] could possibly be positive,” Bob Iaccino, chief market strategist at Chicago-based Path Trading Partners, said in an email. “This is a huge negative.”

And here are the main moves in markets:

Stocks The S&P 500 fell 1.7% as of 9:31 a.m. in New York, while the Dow Jones industrial average slumped 1.8% and the Nasdaq composite index eased 1.8%. The Stoxx Europe 600 slumped 2.5%. The U.K.’s FTSE 100 fell 2.5%. Germany’s DAX Index eased 2.8%. The MSCI Emerging Market Index slumped 2.4%. The MSCI Asia Pacific index fell 1.7%.

Currencies The Bloomberg Dollar Spot index fell 0.2%. The euro rose 0.4% to $1.1387. The British pound gained 0.3% to $1.2771. The Japanese yen strengthened 0.7% to 112.44 per dollar.

Bonds The yield on benchmark 10-year Treasuries fell five basis points to 2.87%. The three-year note yield dropped six basis points to 2.74% as the yield on the five-year note eased six basis points to 2.73%. Germany’s 10-year yield fell four basis points to 0.24%.

Commodities West Texas Intermediate crude slumped 2.7% to $51.45 a barrel. Gold rose 0.4% to $1,242.25 an ounce. LME copper fell 1.1% to $6,105 per metric ton.

LINK ORIGINAL: Latimes

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