(Bloomberg) – US stock index futures lowered, signaling no respite on the route that has gone more than $ 3 trillion from the market since the end of September.
S & P 500 Index contracts declined as much as 1.9 percent from Tuesday's close, before trading of 2,673, down 1.1 percent, from kl. 8:30 in London. Selling press early in the session was so intense that it forced the CME Group to stop trading temporarily, according to a spokesman for the exchange. The European stocks fell into the open and contributed to the negative feeling.
Concern for China-USA. trade relations reinforced after the arrest of Huawei Technologies Cos Finance Director Wanzhou Meng, although traders were still amazed at the extent of the decline. Some wondered that Wednesday's closure for money markets and shortened the increase in futures was a factor.
"It's a bloodbath today," said Naeem Aslam, market analyst at Think Markets UK in London. "The risk aversion trade has returned with revenge. The entire US-China trade weapon element, which promotes some optimism in the market, is under great threat after the arrest of the financial director of the Chinese telecommunications company Huawei."
The stop was the last thing investors needed, already skittish after Tuesday's routine and a handed angry on Wednesday for a day of sorrow for former President George HW Busk. The S & P 500 dropped 3.2 percent on Tuesday, the biggest slide since mid-October, while the Dow Jones Industrial Average dropped nearly 800 points as a large number of concerns that erased the rally in risk reports.
Some of the bricks in the concern wall:
A segment of the US interest curve inverted for the first time in more than a decade, a phenomenon that has occurred before the previous recessions Group about what has actually been agreed between US President Donald Trump and China's President Xi Jinping on Trade And Economic Outlook: The Federal Reserve's Beige Book Report published Wednesday showed fading optimism over growth prospects at US firms.
"One thing adds to the other – there is concern about the flattering return curve, the direction of policy, says Walter" Bucky "Hellwig, Senior Director of BB & T Wealth Management." Together with it's concern to slow down growth. It seems that the growth problem has not been removed, and it is based on a decline. "
Thursday's moves look even worse if the upswing in Wednesday's shortened futures trading season is taken into account. The S & P 500 futures fell as much as 2.5 percent from Wednesday's level, a non-settlement date.
The risk of mood increased across Asian stock markets, bonds and currencies. Among the worst stock traders was a measurement of Chinese stocks, heading for the biggest two-day drop since February. Treasury yields fell to lowest since September, and the yuan continued to fall.
"The future was up overnight, but when I saw tonight, I said" Oh my good, "said Donald Selkin, market democrat at Newbridge Securities, in a telephone interview. "I was surprised in the light of last night and today they were up. Why was sudden optimism volatile?"
CME Group said that volatility near the open trigger released more than 40 of what it calls "speed logic events", which causes intermittent trading breaks in stock index futures and options.
For Bruce McCain, KeyBank's main investment strategy, there is great concern that there will be a floor to the market. "The fear is that this weakness can not be bothered – because the US economy is weaker than we see right now, and because global growth is falling faster than we expected," he said.
Long-term government bond yields and the swinging trade concerns are probably "lingering on the back of merchants" as the routine continues.
– With help from Matt Turner, Abhishek Vishnoi and Luke Kawa.
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