On Monday, the 12th of August 2019, a majority of Asian stock exchanges opened lower with a brutal downswing, while the safe-haven precious, spot-gold prices appeared to be well-supported around $1,500 an ounce over an unfathomable fret that a protracted and costly Sino-US trade war might lead a China-tariff-hurt US economy into a recession.
Adding further strains on investors’ sentiment, Goldman Sachs had revealed in a client note on Sunday (August 12th), that the NY-based multinational lender had offloaded its bet over a resolution of the Sino-US trade dispute before 2020 US presidential election.
Aside from that, rubbing salts into the wounds, Goldman Sachs’ analysts’ poll had also slashed growth forecast for US economy to 1.8 percent during Q4, 2019, from a prior figure of 2.0 percent, much-lower than Trump Administration’s target range of 3 per cent for 2019.
Amid such beleaguered market backdrop, MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.17 percent during late-morning Asia-Pacific trading hours, while South Korean KOSPI posted a modest gain of 0.12 percent.
Nonetheless, markets in Japan and Singapore have been closed for a holiday on Monday (August 12th). Elsewhere in Asia Pacific, Australia’s ASX 200 was down by 0.31 percent to 6,564.40, while New Zealand’s NZ 50 dropped 0.24 percent to 10,848.73 on late-midday trading hours.
Meanwhile, accusing a flight-to-safety response among the investors behind Monday’s (August 12th) mangling, a strategist at McKenna Macro, Greg McKenna said on Monday (August 12th), “Cross asset correlations and money flow continue to tell (us) that this funk in markets is a genuine result of fear and uncertainty from traders and investors. ”