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Stocks fell when trade talks between the United States and China struck a new hurdle as the Treasury rose and the dollar fell after the US manufacturing envelope signaled a contraction for the first time in three years.
The 10-year cash and dollar yield declined after the Purchasing Managers' Index of the Supply Management Institute fell to 49.1 in August, below 50 times, indicating that production was contracted for the month. Reading joined a number of weak numbers produced by factory meters around the world, adding concern for the global economy and raising stakes for deep cuts in the Federal Reserve this year.
"People were feeling better last week because there was better verbal communication, comments coming from outside the US and abroad. But the actions speak more than words, and neither party gives in to raising their tariffs on that specific date, "Jim Paulson, chief investment strategist at Leuthold Group, said in an interview. "There is a difference between where we were on Friday and where we are now in terms of the tariffs that are actually coming into effect. This is a weak production number outside China, and now a weak production number in the United States only reinforces that trade has a negative impact. "
September began with a rocky start to risky assets as traders remain sensitive to the turnarounds and turns of the Sino-American Trade War, and the first big economic data of the month remind investors that the global economy remains shaky in part. With distrust on both sides, officials from the two largest economies in the world are racing to agree on basic terms for re-engagement and even when to hold meetings scheduled for this month.
Elsewhere, the pound went up after Prime Minister Boris Johnson lost his majority in the House of Commons amid the ongoing Brexit coin. West Texas crude oil has fallen below $ 54 a barrel amid fears of economic slowdown since the trade war, which could reduce demand. Hurricane Dorian's eye begins to move northwest of the US coast as the storm continues to flood Big Bahama Island
Here are some key developments:
British parliamentarians will begin discussing an emergency plan to take control of activity the legislature on Tuesday night in London. Bank of England Governor Mark Carney spoke to the Finance Committee on Wednesday with colleagues Andy Haldan, Jonathan Haskel and Gertian Vlieghe about the Bank's August inflation report; he will then appear alone to discuss the UK's economic relations with the EU. Fed spokesmen this week include John Williams of the New York Fed on Wednesday and Fed chairman Jerome Powell on Friday. The forecast for the US job reports on Friday will be widely shown. We watched non-family wages in August with 158,000 increases compared to 164,000 the previous month. Unemployment is projected to be at 3.7% and the average hourly rate of return to 3.0%.
These are the major market movements:
The S&P 500 index sank 1% as of 1:41 PM New York time. The Dow Jones industrial average fell 1.4%. The Stoxx Europe 600 is down 0.2%. MSCI Asia Pacific Index fell 0.2%.
The Bloomberg Dollar Spot Index fell 0.2%. The euro was slightly changed to $ 1.0965. The British pound rose 0.2% to $ 1.2095 after falling briefly to its lowest since 2017. The Japanese yen gained 0.3% to $ 105.88.
The yields on the 10-year treasuries fell five basis points to 1.44%. Yields on the biennium fell six basis points to 1.45%. The 10-year British yield fell by two basis points to 0.397%.
Intermediate West Texas lowered 3.1% to $ 53.39 a barrel. Gold rose 1.6% to $ 1,554.20 an ounce. Honey drops by 1.5% to $ 2.51 a pound.
– With the help of Todd White.
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