Investors on Wall Street took yet another
big hit on Wednesday, not only because it's
looking increasingly like the U.S. and China
are in for a drawn out trade war, but also
a signal of recession coming from the bond
market.
Kim Hyesung reports.
Wall Street retreated Wednesday as the U.S.-China
trade war continues to show no sign of easing
and on concerns over global growth, pushing
investors to the relative safety of government
bonds.
The S&P 500 closed at its lowest point since
March 11... ending under its 100-day moving
average for the first time since February.
The Dow Jones Industrial Average shed more
than 2-hundred-20 points, or point-9 percent,
the S&P 500 lost point-7 percent, and the
Nasdaq point-8 percent.
This as U.S.-China trade tensions continued
to weigh on stocks after Chinese state media
suggested Beijing may slash exports of rare-earth
minerals, a key component in devices ranging
from smartphones to TVs, opening another front
in its trade war with the U.S.
"The U.S. economy has been solid this year.
All the indicators have been better than expected.
But the trade conflict with Beijing could
not only hurt the Chinese economy, but also
the U.S. and the global economy, affecting
intermediary goods and trade.
The Trump Administration's latest currency
tariff threat is also a huge risk factor that
could hurt global trade and growth."
As uncertainties over U.S.-China trade tensions
continue to grow, global bonds maintained
their rally, pulling down yields.
The yield gap between the U.S. 10-year Treasury
note and the 3-month Treasury bill, often
watched as an early signal of a pending recession,
slid to a twelve-year low of minus 13 basis
points.
The U.S. dollar rose for a third day versus
its major peers, including the Japanese yen.
Gold, another investor safe haven, climbed...
and oil retreated.
Kim Hyesung, Arirang News.
