Economy

USA stocks fall on Hong Kong protests, trade worries

USA stocks fall on Hong Kong protests, trade worries”

On Wall Street, futures for the Standard & Poor's 500 index and Dow Jones Industrial Average were off 0.1%.

Goldman Sachs also reduced its fourth-quarter GDP growth forecast by 20 basis points to 1.8%, emphasizing the much greater negative impacts of recent events in the trade war.

The Hang Seng Index fell 2.10 per cent, or 543.42 points, to 25,281.30.

Asian stocks followed their USA counterparts lower Tuesday as political unrest in Hong Kong and Argentina added to trade concerns and knocked sentiment.

Refinitiv data showed Argentine stocks, bonds and the peso had not recorded this kind of simultaneous fall since the South American country's 2001 economic crisis and debt default.

Traders continued to shift money into bonds Monday, sending bond prices sharply higher.

The yield on 10-year Treasuries decreased one basis point to 1.64%.Britain's 10-year yield declined two basis points to 0.47%.Germany's 10-year yield dipped two basis points to -0.61%.Italy's 10-year yield advanced less than one basis point to 1.706%. The yield is used as a benchmark for interest rates on mortgages and other consumer loans.

Banks were also feeling trade heat with Bank of America and Goldman Sachs both losing more than 2%. Symantec dropped 5.7%, Nektar Therapeutics slumped 11.2% and Tractor Supply fell 4.7%.

China-sensitive stocks including Caterpillar, Deere and Boeing all declined more than 1%. Traders usually seek the shelter of utilities and bonds when they want a more secure place to put their money because of concerns over economic growth.

Investors are facing a relatively slow week as far as economic reports and corporate earnings.

Companies releasing results include China's JD.com, Tencent and Alibaba; Cisco, Walmart and Nvidia of the U.S.; the U.K.'s Prudential; Australia's Telstra; Europe's Swisscom and brewer Carlsberg.The U.S. consumer price index, out Tuesday, probably picked up to a 1.7% annual pace in July, according to economist estimates.

Amgen Inc rose 6% as a US judge upheld two patents relating to blockbuster rheumatoid arthritis drug Enbrel, denying a challenge by Novartis AG, which is seeking to launch a copycat version.

Second-quarter reporting season is approaching the finish line, with 452 of the companies in the S&P 500 having reported.

Amgen Inc rose 4.6% as a US judge upheld two patents relating to blockbuster rheumatoid arthritis drug Enbrel, denying a challenge by Novartis AG, which is seeking to launch a copycat version. -China trade war stoked fears of impending global recession. The indexes are down more than 3% for the month, but still up solidly this year, led by the Nasdaq's 18.5% gain. The S&P 500 is up almost 15%, though it's down 4.7% from its all-time high set at the end of July.

During the past month, the rhetoric from Beijing and Washington has increased after US President Donald Trump slapped 10% tariffs on Chinese imports worth another US$300 billion.

Wall Street was set to open lower on August 12, as investors shunned risky bets on fears that a drawn-out trade war between the United States and China could force the global economy into recession. Natural gas fell 1 cent to $2.12 per 1,000 cubic feet.

China on Monday again kept the midpoint trading rate of the yuan slightly above RMB7.00 to $1.00. Gold climbed back above $1,500 an ounce on Monday.

Gold rose 0.3% to $1,515.52 an ounce.West Texas Intermediate crude fell 0.3% to $54.79 a barrel.

The yen last fetched 105.37 per dollar, and was within striking distance of 105.03, its strongest since the January 3 flash crash.



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