Global equities plunge as trade war fears intensify

August 6, 2019

By IFCMarkets

Dollar weakening accelerated despite yuan decline

US stock indexes losses widened on Monday as China’s yuan fell to a more-than-10-year low versus the dollar. The S&P 500 fell 3% to 2844.74. Dow Jones industrial lost 2.9% to 25717.74. The Nasdaq composite dropped 3.5% to 7726.04. The pace of dollar weakening more than doubled: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, fell 0.7% to 97.40 but is higher currently. Stock index futures point to higher market openings today

DAX 30 loss smallest among European indexes

European stocks extended losses on Monday. The EUR/USD climb accelerated yesterday while GBP/USD resumed its slide, both have reversed currently. The Stoxx Europe 600 index ended 2.3% lower. The DAX 30 lost 1.8% to 12658.51. France’s CAC 40 slid 2.2% and UK’s FTSE 100 dropped 2.5% to 7223.85.

Hang Seng still loss leader among Asian indexes

Asian stock indices are tracking today Wall Street losses overnight. Nikkei closed 0.7% lower at 20585.31 despite the yen slide against the dollar. Markets in China are falling as yuan steadied and Beijing confirmed it was suspending purchases of US agricultural products: the Shanghai Composite Index is down 1.8% and Hong Kong’s Hang Seng Index is 1.3% lower. Australia’s All Ordinaries Index deepened previous session losses 2.4% as Australian dollar turned higher against the greenback.

AU200 drops below MA(50)    08/06/2019 Market Overview IFC Markets chart

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Brent rising

Brent futures prices are edging higher today. Prices fell yesterday: October Brent crude closed at $59.81 a barrel on Monday.

Market Analysis provided by IFCMarkets

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