Published: Thu, August 08, 2019
Markets | By Otis Pena

Stocks slide as rate cuts stoke fear of an economic slowdown

Stocks slide as rate cuts stoke fear of an economic slowdown

A trio of central banks all cut interest rates Wednesday - a sign of how countries in the region are trying to protect their economies from a global downturn.

Asia's losses came despite a gain of more than one percent for United States indices as Wall Street recovered from a multi-session losing streak that saw the Dow hit its lowest level this year. The Standard & Poor's 500 hit a two-month low before clawing back to about a 1 percent drop an hour into trading.

China's central bank said Tuesday it is "resolutely opposed" to such a label, and the bank's governor Yi Gang has long vowed it would not engage in a competitive devaluation.

Investors are signaling a general return to safe-haven assets, with increased trading in government bonds and gold reaching a more than a six-year high of $1,510.25 an ounce.

The US stock market was rattled Monday morning after China unveiled more than $60 billion on American-produced goods; announcing the new taxes after trade negotiations with the Trump administration stalled in recent days.

The Dow Jones Industrial Average sank 767 points, or 2.9%, to 25,717.

The interest-rate sensitive S&P 500 banks sub-sector slipped 3.34 per cent.

China's National Development and Reform Commission and the Ministry of Commerce said on Monday it would temporarily not rule out the possibility of levying additional tariffs on imported US farm produce with deals made after August 3, and related Chinese companies have halted purchases of USA farm produce.

It rose by 0.7 percent to its highest since a January flash crash with the currency up 0.5 percent at 106.04, after hitting 105.78 earlier in the session. Last week, after his chief trade negotiators returned from Beijing, President Trump shocked the world by announcing tariffs on the remaining $300 billion in Chinese imports, starting at 10 percent on September 1.

Dow Jones prices nosedived at a time of heightened volatility in the financial markets with the pan-European Stoxx 600 falling by nearly 2 percent - on top of a 2.5 percent drop seen on Friday, the worst performing day for it in 2019.

Walmart faces pressure to stop gun sales after latest US mass shootings
A representative for Walmart didn't immediately respond to a request for comment following the Instagram post. But because of its biggest chain in the US, Walmart continues to face criticism for its firearm stocks.

The S&P 500 fell 49 points, or 1.7%, to 2,832.

KEEPING SCORE: The S&P 500 index was up 0.9% as of 2 p.m.

Solid earnings results helped lift other sectors.

Energy stocks dropped along with the price of crude oil. Natural gas fell 3 cents to $2.08 per 1,000 cubic feet.

Benchmark crude oil fell $1.06 to settle at $53.63 a barrel.

Communications services companies also notched solid gains.

CVS Health Corp rose 6.03 percent after the drugstore chain posted profit above estimates, boosted by strong sales in the Aetna health insurance business it acquired past year. It has also has to do with foreign investors exiting Indian stocks owing to other factors like a bigger tax burden.

Wholesale gasoline fell 7 cents to $1.62 per gallon.

That managed float system limits volatility: the currency has remained confined between 6.1 and 7.1 yuan to the dollar for the last five years. The euro edged up to $1.1211 from $1.1200.

Like this: