Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
The Breakfast Briefing: Global Markets Cautious After Trade Tensions Buffet Stocks
FYI: U.S. stocks were set to open lower Tuesday as investors sought to assess the risks of a re-escalation in U.S.-China trade tensions after Washington doubled down on its threats to hike tariffs on Chinese goods.
Futures for the S&P 500 and Dow Jones Industrials Average were each 0.5% lower following a downbeat European session where the threat of tariffs hit shares of trade-exposed auto makers and weakened oil prices which dragged on energy companies. The pan-continental Stoxx Europe 600 fell 0.4% by midday with its Autos & Parts and Oil & Gas subindexes falling 0.5% and 1% respectively.
In Asia, indexes performed better after China’s Commerce Ministry said Vice Premier Liu He will visit Washington to continue trade talks on Thursday and Friday. The move comes after initial reports suggested the talks could be delayed or canceled altogether.
The Shanghai Composite rose 0.7% while the Hang Seng gained 0.5%. Japan’s Nikkei closed down 1.5%, however, as it played catch-up with other indexes after reopening following an extended period of holiday closures.
Elsewhere, investors continued to sell the Turkish lira after the surprise move Monday by the nation’s election board to cancel and rerun the Istanbul mayoral elections. The dollar rose 0.9% against the lira to 6.1364.
Futures put U.S. indexes on course to follow global markets lower. The S&P 500 and Dow Industrials were seen opening 0.4 and 0.5% lower, respectively.
The dollar was largely flat, with the U.S. Dollar Index last at 97.51, while U.S. government bond prices were little changed. The yield on the benchmark 10-year U.S. Treasury note settled at 2.498%. Bond yields and prices move inversely.
