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Dow lowers 200 points as US-China trade and falls 10-year return unnerve investor

US. Shares fell on Tuesday when investors reassessed the importance of an agreement reached by the US and China to…

US. Shares fell on Tuesday when investors reassessed the importance of an agreement reached by the US and China to postpone new tariffs and because the market melted a flat yield curve in US sovereign debt.

How are the benchmarks gone?

Dow Jones Industrial Average

DJIA, -0.86%

fell 200 points, or 0.8% to 25.618, while the S & P 500 index

SPX, -0.89%

fell 20 points, or 0.7% to 2.770. Nasdaq Composite Index

COMP, -1.16%

fell 63 points, or 0.9% to 7.377.

Read : December is historically the most wonderful time of year for warehouses

What drives the market?

Skepticism around the United States and China’s ability to address concrete issues to avoid new or expanded bilateral tariffs increases as investors focused on the lack of specific concessions from China at last week’s G20 meeting in Argentina, where President Trump and Chinese leader Xi Jinping met.

While the United States agreed on a 90-day moratorium on threatening to raise tariffs of more than $ 200 billion in annual imports to 25% from 10%, a comparison of official statements by Chinese and US officials indicates that it may There is a long way to go before the two camps can agree to ease tensions more permanently.

Meanwhile, confusion had spread on Monday night when an exact 90-day timeline would begin after White House’s economic adviser Larry Kudlow erroneously stated that the negotiation window would begin on January 1, 2019. The White House later prepared a correction and stated that it began on 1 January December.

Even on shareholders, investors are the outflow of the US yield curve, as the return on government debt Continued autumn Tuesday. On Monday, the interest rate on five-year government debt fell below the yield of three-year debt, a phenomenon that preceded past declines and an indicator that investors are more confident about current than future economic growth as the Federal Reserve raises prices.

A wider follow-up spread, as between the 2-year return

TMUBMUSD02Y, -0.14%

and 10-year rate

TMUBMUSD10Y, -1.10%

is drawn to 13.3 points, the narrowest in 11 years. This ratio is a popular indicator of future economic growth, and if the 10-year return falls in the second year, it will increase significant concerns for a coming recession.

What stocks are in focus?

Apple Inc. .

AAPL, -2.35%

shares fall 3.3% early Tuesday, after the stock was one of the leaders in Monday rally when it rose 3.5%.

Shares of Movado Group, Inc .

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