Investors rushed into the safety of bonds Thursday and sold stocks, as it appeared the trade war could be prolonged and more painful for the world economy than expected.
Treasury yields fell sharply, as the futures market priced in higher expectations for fed rate cuts.
Investors rushed into the safety of bonds Thursday and dumped stocks, as it appeared the trade war could be prolonged and more painful for the world economy than expected.Treasury yield dropping about 8 basis points in its biggest one-day move since April 1. At the same, traders in fed funds futures bet on the Fed making two quarter-point rate cuts by the middle of next year and possibly a third in the second half of 2020.
The 10-year yield fell below that of the 1-year for the second time this year. The so-called inverted yield curve has been a reliable sign of a recession if the move is sustained. The U.S. market was also following Europe's bond market. The German bund slipped to a low yield of negative 0.12%, reflecting concerns about the European parliamentary vote.that the Trump administration is prepared to slap tariffs on another $300 billion in Chinese goods, as no new talks are scheduled.
Later, around 3:50 p.m., President Donald Trump said he thinks things will probably happen fast with China.Though vague, that appeared to help lift stocks, while yields moved off lows.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stocks plunge as trade fears resurface – five experts weigh in on what to watchThe U.S. stock market slid downward on more U.S.-China trade concerns after more businesses cut ties with Chinese telecommunications giant Huawei. Here's what 5 experts say you should invest in next.
Read more »
Europe markets set to open mixed as trade war threatens to become tech warEuropean markets are expected to open mixed Wednesday, as markets monitor the increasing involvement of technology giants in the U.S.-China trade war.
Read more »
Trading a Trade War: ‘Markets Don’t Appear Ready for That’How do you trade a trade war? A previously abstract question is becoming more pressing for investors as U.S.-China trade relations fray. Here are ways they are adapting.
Read more »
Mortgage rates slide to match the lowest of 2019 as trade war heats upRates for home loans fell again, in what should be a bonus for home shoppers, if they could find homes to buy and scrape together a down payment.
Read more »
China faces possible hit to credit rating if the trade war isn't resolvedShould the trade impasse linger on, the damages could become greater and start having some deeper impacts.
Read more »
China's currency is sending a warning signal about the trade warChina's currency has been an important barometer for progress in U.S.-Chinese trade talks, and right now it's signaling things aren't going well.
Read more »
Trump set to send $16 billion to bailout farmers hurt by China trade war'It's a good time to be a farmer, we're going to make sure of that,' President Trump says, announcing $16 billion in aid to farmers as the trade war with China continues
Read more »
The trade war will be a 'pain' for Apple's earnings, Nomura Instinet says, cutting estimatesNomura Instinet lowered its price target on Apple shares, citing a coming 'trade strain' on the company's earnings.
Read more »
Market is overreacting to trade war 'theater,' Nobel Prize winner Robert Shiller saysHere's why Nobel Prize winner Robert Shiller says tariffs are 'not the end of the world.' (via TradingNation)
Read more »
More active managers are beating the stock market again thanks to the trade war: Goldman SachsMutual funds are having one of their best years since the financial crisis, with 42% of large-cap active mutual funds outperforming their benchmarks so far in 2019, well above the 34% rate averaged during the last decade
Read more »
Trade war and Iran tensions creating a 'very unstable' oil market, Russia minister saysCurrent geopolitical tensions are making it harder and harder for oil-producing nations to make decisions that will help stabilize crude prices, Russian Energy Minister Alexander Novak told CNBC Sunday.
Read more »