The Dow Jones continued to reveal its vulnerability on Monday, as the index traded down 267 factors (0.85%) to 26,019.
Most of the injury was completed on the opening bell, with protests in Hong Kong, a shocking vote in Argentina, and Jeffrey Epstein fallout including to a potent soup of bearish information for world threat urge for food.
Truly Global Risks Weigh on Dow Jones
As if the numerous commerce standoff between the US and China was not sufficient, escalating tensions between Hong Kong protesters and the federal government are beginning to be taken significantly by stock markets.
There was additionally an apparently bearish response from Wall Street as Attorney General William Barr commented on “serious irregularities” within the dealing with of Jeffrey Epstein in Federal Custody. Fears are rising that there’s going to be some dramatic political fallout from the custody suicide. The proven fact that Trump was tweeting a conspiracy theory over the weekend is definitely including to the instability.
JUST IN: Attorney General William Barr says the Department of Justice has realized of “serious irregularities” on the federal facility the place Jeffery Epstein died and that the division’s Inspector General will “get the bottom of what happened.”
— NPR (@NPR) August 12, 2019
More issues for the Dow emerged as another populist domino fell, this time in Argentina. Concerns mounted each over the dangers to the South American nation as properly as the contagion which may unfold from a deepening financial disaster there.
European inventory markets swooned as home banks took a serious hit from falling yields. Commerzbank inventory hit a record low.
Trump Unlikely to Pump Stock Market Anytime Soon
Predicting the route of the Dow Jones and forecasting the commerce ways of Donald Trump go hand in hand.
Unfortunately, Kathy Lien – managing director at BK Asset Management – believes that inventory bulls hoping for a speedy decision to the commerce warfare standoff are prone to be disenchanted.
“It’s clear that President Trump has no plans to make a deal with China this far from the 2020 election. He’s on a rampage to show his constituents that he’s fulfilling the promises that he’s made in 2016 and in doing so he’s hurting the markets and the US dollar.”
Dow Stocks: Goldman Sachs Falls, Apple Rises
After bouncing off its 200-day moving average, Dow Jones bears look like promoting the current rally.
Goldman Sachs and JP Morgan Chase had been each important losers, with the previous down 2.4% amid the parabolic surge in world bonds. Pfizer was the worst performer, shedding over 2.96% as uncertainty swirled over a potential dividend reduction.