US stocks slid after Trump China trade comments

August 12, 2019

By IFCMarkets

Dollar weakens as Trump tweets rate cuts would help US companies

US stock indexes pulled back on Friday as President Trump told reporters he was “ not ready “ for a deal with China and negotiations earlier announced to continue in Washington in September may be cancelled. The S&P 500 lost 0.7% to 2918.65, falling 0.5% for the week. Dow Jones industrial slid 0.3% to 26287.44. The Nasdaq fell 1% to 7959.14. The dollar weakening continued as Trump tweeted Federal Reserve interest rate cuts “ will make it possible for our companies to win against any competition.” 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, slipped 0.02% to 97.52 but is higher currently. Stock index futures point to higher market openings today

DJI tests resistance    08/12/2019 Market Overview IFC Markets chart

DAX leads European indexes movement

European stocks resumed their retreat on Friday after the leader of Italy’s League Party called for a snap election. GBP/USD fell while EUR/USD rose on Friday with both pairs reversing their directions currently. The Stoxx Europe 600 Index lost 0.8% Friday. The DAX 30 fell 1.3% to 11693.80. France’s CAC 40 lost 1.1% and UK’s FTSE 100 slid 0.4% to 7253.85.

Shanghai Composite leads Asian indexes gains

Asian stock indices are mixed today in a thin trading with markets in Japan closed for a holiday. Yen accelerated its climb against the dollar. China’s markets are mixed as China’s central bank set the midpoint for the yuan weaker than 7 per dollar for the third day in a row: the Shanghai Composite Index is up 1.5% while Hong Kong’s Hang Seng Index is 0.3% lower. Australia’s All Ordinaries Index extended gains 0.1% as the Australian dollar accelerated its slide against the greenback.

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Brent down

Brent futures prices are edging lower today on world growth slowing concerns. Prices rose on Friday: Brent for October settlement ended 2% higher at $58.53 a barrel Friday, nevertheless closing 5.4% lower for the week.

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