The Breakfast Briefing: Stocks Fall As Uncertainty Over Trade Talks Persists

Ted

FYI: U.S. stocks were set to open lower Wednesday as investors closely monitored rising U.S.-China tensions.

The Dow Jones Industrial Average and S&P 500 futures were both down 0.4% before U.S. markets opened.

In Asia, the Shanghai Stock Exchange dropped 1.1%, Hong Kong’s Hang Seng Index was also down 1.2% and Korea’s Kospi dropped 0.4%. The moves echoed sharp losses in U.S. markets Tuesday.

Meanwhile, in Europe, the Stoxx Europe 600 dropped 0.3% in morning trading, with benchmark indexes across the U.K., France and Germany all drifting lower.

Companies in the finance and utilities sectors dragged the European benchmark lower Wednesday, while technology and communications groups did better.

After falling steeply at the beginning of the year, the Cboe Volatility Index or VIX, a yardstick for expected swings in equities, has picked up this week.

The 10-year U.S. Treasury dipped to 2.430% from 2.448% on Tuesday. Yields move inversely to prices. German 10-year government bonds were still in negative territory at -0.038% as investors mull the possibility that President Trump could soon ramp up trade barriers for Europe too.

The WSJ Dollar Index, which tracks the dollar against a basket of 16 currencies, was up slightly.
Regards,
Ted

WSJ:
https://www.wsj.com/articles/stocks-continue-to-fall-as-uncertainty-over-trade-talks-persists-11557301708

Bloomberg:
https://www.bloomberg.com/news/articles/2019-05-07/asia-stocks-face-losses-as-tariff-worries-linger-markets-wrap?srnd=premium

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-stock-market-china-trade-lyft-stock-match-stock/


Reuters:
https://www.reuters.com/article/us-usa-stocks/futures-slip-as-investors-eye-crucial-trade-talks-idUSKCN1SE1CS

CNBC:
https://www.cnbc.com/2019/05/08/stock-market-us-china-trade-deal-standoff.html

U.K.:
https://uk.reuters.com/article/uk-britain-stocks/trade-fears-weak-earnings-keep-ftse-100-shackled-idUKKCN1SE0RC

Europe:
https://www.reuters.com/article/europe-stocks/update-1-trade-concerns-keep-a-lid-on-europes-rise-upbeat-earnings-boost-germany-idUSL5N22K2LG

Asia:
https://www.marketwatch.com/story/asian-markets-fall-after-wall-street-tumbles-on-trade-war-fears-2019-05-07/print

Bonds:
https://www.cnbc.com/2019/05/08/us-bonds-investors-monitor-us-china-trade-standoff.html

Currencies:
https://www.cnbc.com/2019/05/08/forex-markets-us-china-trade-japanese-yen-in-focus.html

Oil:
https://www.cnbc.com/2019/05/08/oil-markets-us-sanctions-on-iran-and-venezuela-in-focus.html
Gold:
https://www.cnbc.com/2019/05/08/gold-markets-china-us-trade-in-focus.html

Cuirrent Futures:
https://finviz.com/futures.ashx