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

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.