Trade tensions up

Stocks tanks as China hits back

China responded to President Trump’s plans to impose a 10% tariff on more Chinese goods by allowing the yuan to weaken 1.43% to 7.07 against the dollar this morning. Continuing US-China trade tensions and the escalating violence in Hong Kong depressed markets globally, with the Hang Seng falling 3%. Tech stocks suffered in particular, with the Nasdaq down 1.32%, while the S&P500 had its worst week so far this year, with potential for more downside.

Investors fleeing for safe havens

European markets were all down on trade fears, as investors headed for the bond markets. The 10-Year government bond yields fell to all-time lows, with Germany at -0.488%, Netherlands -0.376% and France -0.256%.

The FTSE was down 1.29%, and sterling gained up to 1.22 against the dollar, on increasing speculation that Prime Minister Boris Johnson is planning for a snap election after taking the UK out of the EU on October 31st, which investors are hoping may bring an end to the ongoing Brexit saga.

Gold bucked the trend by increasing to a 6-year high of $1,453, as central banks bought a record amounts on persisting global trade tensions. Crude fell to $55/barrel on shrinking global demand.

Please note these products may not be available to trade in all regions

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account