FYI: Global stocks fell Thursday and 10-year U.S. government bonds reached a 52-week low as political uncertainties in Europe and disappointing economic data added to a gloomy outlook for global growth.
The Stoxx Europe 600 dropped 1.3% in opening trading, with all sectors of the pan-continental index falling into the red.
In Asia, markets were broadly lower. The Shanghai Composite slipped 1.4%, Hong Kong’s Hang Seng traded 1.6% lower and Japan’s Nikkei lost 0.3%.
In the U.S., futures pointed to declines of 0.7% for the Dow Jones Industrial Average and S&P 500 and 1.1% for the Nasdaq-100.
Yields on 10-year U.S. government bonds, which fall as prices rise, hit a 52-week low of 2.367%. The yield on 10-year German government bonds fell further into negative territory and were last at -0.101%.
Investors were also looking ahead to the European Parliamentary elections that began in the U.K. and the Netherlands Thursday. Populist parties are predicted to perform well across Europe when continentwide results are announced Sunda
Investors were also weighing the latest meeting minutes from the Federal Reserve, which reinforced the view that the central bank will leave interest rates unchanged for now. The meeting took place before the recent flare up in trade tensions.
The WSJ Dollar Index, which tracks the dollar against a basket of currencies, rose 0.1%.
In commodity markets, oil prices continued to slip after data Wednesday showed U.S. stockpiles rose. Brent crude fell 1.4% to $70.00 a barrel. Gold prices rose 0.2% to $1,276.08 an ounce.
Regards,
Ted
MarketWatch:
https://www.marketwatch.com/story/us-stock-futures-drop-as-china-trade-spat-continues-to-unsettle-investors-2019-05-23/printWSJ:
https://www.wsj.com/articles/global-stocks-dip-amid-political-trade-tensions-11558599215?mod=hp_lead_pos1Bloomberg:
https://www.bloomberg.com/news/articles/2019-05-22/asian-stocks-set-for-decline-amid-trade-tensions-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-stock-market-rally-china-trade-war/Reuters:
https://uk.reuters.com/article/uk-global-markets/trade-woes-sink-shares-brexit-weighs-on-sterling-idUKKCN1ST01UCNBC:
https://www.cnbc.com/2019/05/23/stock-market-trade-war-concerns-weigh-on-market-sentiment.htmlU.K.:
https://uk.reuters.com/article/uk-britain-stocks/brexit-may-pressures-squeeze-british-stocks-idUKKCN1ST0QIEurope:
https://www.reuters.com/article/us-europe-stocks/trade-worries-poor-data-slam-european-shares-idUSKCN1ST0O7Asia:
https://www.marketwatch.com/story/asian-markets-pull-back-on-fears-of-prolonged-trade-standoff-2019-05-22/printBonds:
https://www.cnbc.com/2019/05/23/us-bonds-treasury-yields-in-focus-amid-economic-data-auctions.htmlCurrencies:
https://www.cnbc.com/2019/05/23/forex-market-brexit-us-china-trade-war-in-focus.htmlOil:
https://www.cnbc.com/2019/05/23/oil-market-middle-east-tensions-opec-supply-cuts-in-focus.htmlGold:
https://www.cnbc.com/2019/05/23/gold-market-us-china-trade-war-brexit-in-focus.htmlCuirrent Futures:
https://finviz.com/futures.ashx
