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Home / Business / Stock Market News: August 7, 2019

Stock Market News: August 7, 2019



U.S. stocks slipped after a plethora of international central banks cut interest rates, signaling a synchronous tilt toward simpler monetary policy as officials sounded alarms about the impact of ongoing trade tensions on global growth.

Port assets, including US Treasuries and precious metal prices, continued to gap higher following a routine in risk allocations earlier this week. Gold prices broke $ 1,500 per ounce level for the first time since 2013. German bond yields slid further into negative territory, with Germany's yield curve flattening most since the financial crisis on Wednesday morning.

Here were the main features of the market, from 13:05 ET.

  • S&P 500 (^ GSPC): -0.64%, or 18.5 points

  • Dow (^ DJI): -0.81%, or 210.07 points

  • Nasdaq (^ IXIC): -0.37%, or 29.35 points

  • 10-year Treasury Rate (^ TNX): -7.7 bps to 1.662%

  • Gold futures (GC = F): + 2.3% to $ 1,518 , 4 per ounce

  • US Dollar Index (DX-Y.NYB): -0.19% to 97.44

  • US Chinese Yuan Rate on Land (CNY = X): -0.0256% to 7.0222

<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8 em) – sm "type =" text "content =" New Zealand's central bank lowered the reference rate by 50 basis points, a more aggressive cut than expected by most economists, & nbsp; to a low of 1% The country's central bank governor Adrian Orr signaled that economic headwinds had increased and that further measures – including cuts to negative interest rates – could be justified. "Data-reactid =" 26 "> New Zealand's central bank lowered the reference rate by 50 basis points, a more aggressive cut than expected by most economists, at a low time of 1%. The country's central bank governor Adrian Orr signaled that economic headwinds had increased and that further measures – including cuts to negative interest rates – could be justified.

Other economies also saw policy rates lowered on Wednesday due to growing global uncertainty. Thailand's central bank unexpectedly cut interest rates by 25 basis points, while India's central bank reduced its own interest rate by 35 basis points.

The contemporary features of the three central banks emphasized a global economy that was plagued by rising trade tensions and slowing growth, with central bankers rushing to provide support.

President Donald Trump weighed in on the rate cut on Wednesday morning, reiterating his call to the Federal Reserve to do the same.

"Three central banks lowered interest rates. & # 39; Our problem is not China – We are stronger than ever, money is flowing into the US while China is losing thousands of companies to other countries and their currency is under siege – Our problem is a Federal Reserve which is also .. … …. proud to admit their mistake of acting too fast and tightening too much (and that I was right!). They have to cut rates bigger and faster and stop their ridiculous quantitative tightening NOW, "Trump wrote in a series of Twitter posts.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "However, one of the more rude members of the Federal Reserve suggested that additional relief in the United States may be too preventive at this time until the effect of the Fed's 25 basis point cut last week could be assessed, St. Louis Fed pr esident James Bullard said in a speech Tuesday. "data-reactid =" 34 "> However, one of the more lazy members of the Federal Reserve suggested that further relief in the United States may be too preventive at this time until the effects of the Fed's cut of 25 basis points last week could be considered, St. Louis Fed President James Bullard in a speech Tuesday.

"While additional policy action may be desirable, the long and varying backlogs in the effects of monetary policy suggest that the effects of past actions are only now beginning to affect macroeconomic outcomes," she said. he in prepared remarks.

And while recent developments in the trade negotiations suggest it will be "difficult to reach a stable global trade regime during the forecast," Bullard added that "US monetary policy cannot reasonably respond to the daily giv- and take the action of the trade negotiations. Bullard reiterated that he saw only one interest rate cut in 2019.

Prior to another US-Chinese trade dealership meeting in September, market players continue to see the yuan against the US dollar after the US Treasury appointed China a currency manipulator on Monday .

Traders working on New York Stock Exchange (NYSE) floor in New York, USA, August 6, 2019. REUTERS / Brendan McDermid


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