Markets continue to be spooked by the continual escalation in trade tension between particularly the US and China. President Trump over the weekend said he would look to block any investment by China into US technology companies and that he would stop any sale of technology to China. This follows his threat of putting a 20% tariff on all European cars not made in the US.
Stock indices have been trading lower all day in Asia , Europe and now the US. The Dow Jones index is at 24332 down 1.0% , the S&P500 is at 2723 down 1.1% and the Nasdaq is at 7579 down 1.50% as investors move quickly back to perceived safe havens like government bonds and into currencies such as CHF and JPY.
US10 yr yields are trading at 2.86% down 3 ticks and the US Dollar is mixed with the EUR at 1.1682 up 27 , the GBP at 1.3279 up 11 and the JPY at 109.48 down 48. The USD is however stronger against the AUD , CAD and NZD.
Gold is steady at 1269 and Crude oil has been volatile after the OPEC meeting last week. The oil producers did increase the production of oil to supply the market but it was a bit uncertain exactly how much they increased or if it was physically possible for this to happen. WTI crude is last at 68.65 up 7 , while Brent crude is at 74.10 down 1.45.
The Chicago Fed activity index was lower at -0.15 with market expectations of a rise of 0.34 confirming some economic weakness.