On Monday, the 13th of May 2019, a gauge of global equity indexes had wrapped up the day lower and Chinese Yuan had been plunged to its lowest levels since last December, while there had been a bloodbath over the Wall St.
with all of its three key indexes curbed more than 2.5 percent following announcement of China’s retaliatory tariff on $60 billion worth of US imports, which had every potential to butcher global equity indices, analysts suggested.
At Monday’s (May 13th) market closure, MSCI’s gauge of global stocks across the world which keeps track of 47 stock exchanges, had shed just a notch shy of 2.0 percent, posting its biggest intra-day drag in more than five months, while the index had breached a two-months low.
Following China’s retaliatory tariffs on US imports despite US President Donald Trump’s warning, Sino-US trade tensions had escalated further and investors had been found bracing for the impacts, while a majority of investors had already shored up on to safe-haven assets after a wave of mass-scale sell-off on global equity markets.
Addressing to growing pessimism over Sino-US trade tensions, a chief global market strategist at Invesco in New York, Kristina Hooper said, “It’s clear that there is a lot of nervousness around the U.S.-China trade negotiations and concern that it’s really deteriorating pretty significantly and that’s impacting all areas of markets”.
On Monday (May 13th) market closure, trade-sensitive Dow fell 2.38 percent to 25,324.99 and Nasdaq had been nudged 3.41 percent lower to 7.647.02 over worries of Trump’s China tariff hike that would eventually hit Chinese-export dependent tech stocks, while S&P 500 had shed 2.41 percent to 2,811.87.
Meanwhile, the regional Pan-European STOXX had shed 1.21 percent and the US Treasury Yield fell to one and a half month low, as investors had started to put their money on safe-haven low-rise assets. Apart from that, attaining a spur out of Sino-US trade tensions, safe-haven gold had gained 1.1 percent to $1,299.22 per ounce, while safe haven currencies such as Swiss Franc added 0.55 percent against the American dollar, and the US Dollar index measured against a basket of six major currencies had been little changed at Monday’s (May 13th) market closure, winded up the day down by 0.03 percent to 97.32.