The so-called “stock market bloodbath” has continued on Friday with major indices falling down to the lows of the last October. What's going on?
Wall Street is braced for lower start on trade jitters
On Tuesday, Wall Street was braced for starting lower because renewed fears over a prolonged trade conflict China and America put pressure on investor sentiment.
China’s Vice Premier Liu He is going to visit America this week for trade negotiations, Beijing informed on Tuesday, thus playing down an expected escalation in tensions after American leader vowed to slap new levies.
On Sunday, American President told that the higher levies would come into effect on Friday if his country fails to make a deal with China that provoked a global sell-off in stocks and sparked worries of a deceleration in global surge.
As a matter of fact, tariff-sensitive Boeing Co headed south by about 1.2%, while CaterpillarInc inched down by 1.1%. Additionally, Boeing stocks were also suppressed by the news that Barclays was downgraded to "equal weight".
Trade tensions also sent crude prices down and stopped a recent leap that powered the S&P 500 as well as the Nasdaq to record maximums. Apparently, the benchmark index is about 1% away from its all-time maximum of 2,954.13.
Contributing to the downbeat sentiment, the European Commission told Italy's enormous debt is anticipated to keep soaring in 2019 and also next year as the country's surge is still sluggish.
ET, Dow e-minis slumped by 0.6%. As for S&P 500 e-minis, they decreased by 0.65%, while Nasdaq 100 e-minis headed south by 0.79%.
Besides this, crude majors Exxon Mobil Corp inched down by 0.5%, while Chevron Corp headed south by 0.3%.
American International Group Inc headed north by 4.8% after the insurer posted a quarterly gain that blew past hopes and also reported its first underwriting revenue since the financial downtime.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
Will coronavirus continue keeping the markets in fear? What releases should we wait for? Find out in the news!
The British pound has increased in value over the course of the past week in line with an ongoing improvement in investor sentiment.
Economic activity in service sector in the Euro zone and the UK is on its lowest rates since 2009.
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