FYI: Global markets dropped along with bond yields on Monday, as investors continued to digest the impact of President Trump’s threat to introduce fresh tariffs on imports from Mexico.
The Stoxx Europe 600 was down 0.7% in opening trading. The electronic technology and industrial services sectors weighed on markets in the region, as shares in semiconductor firm Infineon Technologies dropped 5.7%.
The German market drifted lower after the chairwoman of Chancellor Angela Merkel’s junior coalition partner stepped down, adding to uncertainty over the government in Berlin.
In Asia, the Shanghai Stock Exchange lost 0.3%, Hong Kong’s Hang Seng Index was down 0.2% and Japan’s Nikkei was down 0.9%.
Futures pointed to opening losses on Wall Street with the Dow Jones Industrial Average down 0.7% and the S&P 500 down 0.6%.
Investors have grown skittish about the prospects for global growth in recent sessions as concerns about trade tensions returned to the fore.
In addition to hitting equity markets, renewed trade concerns have driven down yields on key sovereign bonds, often seen as havens when investors grow risk-averse.
The 10-year U.S. Treasury yield dropped to 2.082% on Monday, from 2.139% on Friday, while the yield on 10-year German government debt pushed further into negative territory at -0.211%. Yields move inversely to prices.
The WSJ Dollar Index, which tracks the dollar against a basket of 16 currencies, was broadly flat.
In commodities, global benchmark Brent crude oil was down 1.6% at $60.98 a barrel.
Regards
Ted
MarketWatch:
https://www.marketwatch.com/story/dow-set-to-renew-slide-to-start-the-week-as-10-year-bond-yield-extends-retreat-2019-06-03/printWSJ:
https://www.wsj.com/articles/stocks-bond-yields-start-the-week-with-fresh-declines-11559548438Bloomberg:
https://www.bloomberg.com/news/articles/2019-06-02/asia-stocks-face-more-pressure-on-trade-war-angst-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-china-trade-talks-apple-wwdc-google-antitrust-probe/CNBC:
https://www.cnbc.com/2019/06/03/stock-markets-wall-street-monitors-intensifying-trade-war-concerns.htmlReuters:
https://www.reuters.com/article/us-global-economy/global-recession-fears-grow-as-factory-activity-shrinks-idUSKCN1T40EIU.K.
https://uk.reuters.com/article/uk-britain-stocks/ftse-at-multi-month-low-profit-alert-sinks-kier-idUKKCN1T40SGEurope:
https://www.reuters.com/article/us-europe-stocks/infineon-plunge-trade-woes-send-european-shares-to-3-month-lows-idUSKCN1T40TFAsia:
https://www.marketwatch.com/story/asian-markets-mostly-lower-as-trade-tensions-show-no-sign-of-fading-2019-06-02/printBonds:
https://www.cnbc.com/2019/06/03/us-bonds-treasurys-tick-lower-as-investors-await-data-auctions.htmlCurrencies:
https://www.cnbc.com/2019/06/03/forex-market-us-china-trade-war-global-slowdown-fears-in-focus.htmlOil:
https://www.cnbc.com/2019/06/03/oil-market-us-china-trade-war-us-crude-stockpiles-in-focus.htmlGold:
https://www.cnbc.com/2019/06/03/gold-market-us-china-trade-tensions-global-recession-fears-in-focus.htmlCuirrent Futures:
https://finviz.com/futures.ashx
