FYI: Stocks were pummeled by selling Monday, pushing indexes from New York to Shanghai lower, as the yuan reeled and fresh trade threats between Beijing and Washington raised fears of an economic slowdown.
The Dow Jones Industrial Average fell 767 points, or 2.90%, to 25717, its biggest decline since the start of the year. The S&P 500 shed 2.98% and the Nasdaq Composite declined 3.47%.
Stocks elsewhere retreated, with benchmark indexes in Europe, Japan and Hong Kong falling at least 1% apiece.
The latest wave of selling started, investors and analysts said, after reports showed Chinese and U.S. officials ratcheting up pressure on each other in their prolonged trade fight. The Chinese yuan sank below 7 per dollar and hit an all-time low in offshore trading Monday, with local officials blaming the depreciation on President Trump’s decision last week to extend tariffs to almost all Chinese imports. Mr. Trump responded on Twitter, accusing China of engaging in currency manipulation.
The back-and-forth dealt a blow to some investors’ hopes that the two countries would ultimately reach a trade agreement. Worries about the conflict have weighed on global growth this year. The trade fight has also had an impact on the U.S., where growth and consumer spending remain strong: The Federal Reserve last week cut interest rates for the first time since 2008, in part to cushion the economy against what it sees as rising financial risks.
The German 10-year bund yield briefly hit a fresh low, while the yield on the benchmark 10-year U.S. Treasury note was at 1.736%, compared with 1.864% Friday. Bond yields fall as prices rise.
That sent bank stocks sharply lower, with the KBW Nasdaq Bank Index losing 3.9%. Lower bond yields tend to hurt shares of banks, since they dent their lending profitability.
Shares of industrial and technology firms also reeled. Many such companies rely heavily on global trade, meaning their shares often react quickly to news of U.S.-China relations.
Caterpillar fell 3%, while Facebook , Amazon.com , Apple and Google parent Alphabet fell more than 3% apiece.
Regards,
Ted
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2019-08-05/your-evening-briefingMarketWatch:
https://www.marketwatch.com/story/dow-futures-down-more-than-300-points-as-us-china-trade-fight-deepens-2019-08-05/printWSJ:
https://www.wsj.com/articles/stocks-yuan-drop-sharply-as-trade-spat-intensifies-11564981961Bloomberg:
https://www.bloomberg.com/news/articles/2019-08-04/asia-stocks-set-to-drop-with-trade-back-in-focus-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/stock-market-suffers-worsts-day-this-year-dow-dives/CNBC:
https://www.cnbc.com/2019/08/05/us-futures-amid-trade-turmoil-between-beijing-and-washington.htmlReuters:
https://uk.reuters.com/article/us-usa-stocks/wall-street-slumps-as-yuan-slide-intensifies-trade-angst-idUKKCN1UV189U.K:
https://uk.reuters.com/article/uk-britain-stocks/uk-shares-tumble-as-trade-tensions-fuel-sell-off-idUKKCN1UV0L1Europe:
https://www.reuters.com/article/us-europe-stocks/miners-hit-as-china-woes-hurt-european-stocks-idUSKCN1UV0MDAsia:
https://www.cnbc.com/2019/08/05/asia-stocks-us-china-trade-china-economic-data-currencies-in-focus.htmlBonds:
https://www.cnbc.com/2019/08/05/us-bonds-10-year-treasury-yield-falls-to-nearly-3-year-low.htmlCurrencies:
https://www.cnbc.com/2019/08/05/forex-markets-chinese-yuan-japanese-yen-in-focus.htmlOil:
https://www.cnbc.com/2019/08/02/oil-markets-us-china-trade-war-in-focus.htmlGold:
https://www.cnbc.com/2019/08/05/gold-markets-dollar-us-china-trade-in-focus.htmlWSJ: Markets At A Glance:
https://markets.wsj.com/usMajor ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitorSPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-trackerSPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectorsCurrent Futures:
https://finviz.com/futures.ashxChubby Checker:
