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Reuters
NEW YORK
Investors piled into gold, safe-haven yen and bonds on Monday over nagging concerns about a prolonged U.S.-China trade war and global growth, while Argentina’s peso plunged 22% after voters handed its president an election mauling.
The yen rose to its highest in more than a year and a half versus the dollar on the prospect the Japanese currency could gain more in the case of a drawn-out U.S.-Sino trade conflict.
Concerns that a trade deal would not be reached before the 2020 U.S. presidential election grew after Goldman Sachs on Sunday became the latest to cut its U.S. growth outlook and warn a trade stand-off would fester past the election.
U.S. stocks fell, following a decline in Europe, to push a gauge of global equity performance lower. Stocks in China rallied more than 1% after the yuan avoided further drama after Chinese authorities allowed the yuan to slip below the seven-per-dollar level last week.
Stocks in the near term lack a catalyst either from company earnings, the Federal Reserve or a trade deal, said Rahul Shah, chief executive of Ideal Asset Management in New York.
“The promise of a trade deal coming this year, I think that’s becoming less and less likely,” Shah said. “That does set up the market possibly for a correction at this point,” he said.
Stocks could dip between 5% to 10% but prompt long-term investors to enter the market as valuations fall, he said. Half of Shah’s portfolio is corporate debt with remainder tech stocks and shares with solid dividends, he said.
MSCI’s gauge of stock performance in 47 countries fell 0.6% while Wall Street also fell.
The Dow Jones Industrial Average slid 265.06 points, or 1.01%, to 26,022.38. The S&P 500 lost 23.37 points, or 0.80%, to 2,895.28 and the Nasdaq Composite dropped 52.26 points, or 0.66%, to 7,906.88.
European shares also fell, with the pan-regional FTSEurofirst 300 of leading European shares closing down 0.31%, while Germany’s export-heavy DAX off 0.12%.
Germany’s Ifo survey echoed the growth concerns with its measures for current conditions and economic expectations both having worsened in the third quarter.
NEW YORK
Investors piled into gold, safe-haven yen and bonds on Monday over nagging concerns about a prolonged U.S.-China trade war and global growth, while Argentina’s peso plunged 22% after voters handed its president an election mauling.
The yen rose to its highest in more than a year and a half versus the dollar on the prospect the Japanese currency could gain more in the case of a drawn-out U.S.-Sino trade conflict.
Concerns that a trade deal would not be reached before the 2020 U.S. presidential election grew after Goldman Sachs on Sunday became the latest to cut its U.S. growth outlook and warn a trade stand-off would fester past the election.
U.S. stocks fell, following a decline in Europe, to push a gauge of global equity performance lower. Stocks in China rallied more than 1% after the yuan avoided further drama after Chinese authorities allowed the yuan to slip below the seven-per-dollar level last week.
Stocks in the near term lack a catalyst either from company earnings, the Federal Reserve or a trade deal, said Rahul Shah, chief executive of Ideal Asset Management in New York.
“The promise of a trade deal coming this year, I think that’s becoming less and less likely,” Shah said. “That does set up the market possibly for a correction at this point,” he said.
Stocks could dip between 5% to 10% but prompt long-term investors to enter the market as valuations fall, he said. Half of Shah’s portfolio is corporate debt with remainder tech stocks and shares with solid dividends, he said.
MSCI’s gauge of stock performance in 47 countries fell 0.6% while Wall Street also fell.
The Dow Jones Industrial Average slid 265.06 points, or 1.01%, to 26,022.38. The S&P 500 lost 23.37 points, or 0.80%, to 2,895.28 and the Nasdaq Composite dropped 52.26 points, or 0.66%, to 7,906.88.
European shares also fell, with the pan-regional FTSEurofirst 300 of leading European shares closing down 0.31%, while Germany’s export-heavy DAX off 0.12%.
Germany’s Ifo survey echoed the growth concerns with its measures for current conditions and economic expectations both having worsened in the third quarter.
