The U.S. Market Is Indicated Lower
The U.S. markets are indicated lower after global markets fall. Uncertainty over the U.S./China Phase-1 Trade Deal and escalating violence in Hong Kong are to blame. Last week, officials on both sides of the disagreement said the U.S. and China had agreed to mutually rollback tariffs.
Late on Friday, U.S. President Donald Trump dowsed hopes saying he had not agreed to remove tariffs and was opposed to the idea. The lack of clarity comes at a critical juncture. Xi and Trump are expected to complete Phase One as early as this month but there is still no deal and no venue at which to do the signing.
The NASDAQ Composite is in the lead with a loss of -0.45% while the Dow Jones and S&P 500 are close behind. In stock news, shares of Boeing are moving lower after American Airlines and Delta announced they would extend the 737-Max grounding. Shares of Apple are also moving lower in early trading. A watchdog group has raised concerns the new Apple charge card was discriminating on the basis of sex. Xerox and HPQ are moving in opposite directions after the two agreed to a four-week due diligence period. HPQ made a bid for Xerox last week.
European Markets Move Lower As Fears Resurface
European markets are broadly lower in early Monday trading as market fear resurfaces. The news on trade and Hong Kong are a major drag on sentiment because they increase and perpetuate the environment of uncertainty in which the market is operating. The French CAC is hugging the flat-line at midday while the DAX is down -0.42% and the FTESE -1.20%.
In economic news, the UK 3rd quarter GDP came in at 0.3% and above expectations. Analysts had feared the island nation would slip into recession after posting a small contraction for the 2nd quarter. Notably, hiring plans have increased despite a drop in manufacturing output. In stock news, shares of Gregg are up more than 17% after beating consensus estimates and raising the full-year guidance.
Asian Markets Are Mostly Lower
Asian markets are mostly lower after Monday’s session. The Hong Kong Hang Seng led the rout with a loss of -2.62% as protests in the city-state turn deadly. One man was shot, another burned, as police try to control political unrest. The Shanghai Composite posted a smaller -1.83% while most others in the region fell less than -1.0%. The only index to buck the trend is the ASX with a gain of 0.72%.
This article was originally posted on FX Empire
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