Morning Notes

21/06/2018 - Argonaut Morning Note

U.S. stocks stabilized Wednesday after escalating worries about U.S.-China trade relations triggered a selloff in the previous session. Investors this week have been more seriously considering the chance that the world's two largest economies could embark on a growth-hindering trade war, although many still expect the two countries to ultimately dial down their plans. Stocks, commodities and bond yields fell Tuesday after President Donald Trump called for his administration to identify $200 billion in Chinese goods for a fresh round of tariffs. The Dow Jones Industrial Average was down 0.2% in the last half-hour of trading. The S&P 500 was up 0.2%, and the tech-heavy Nasdaq Composite rose 0.9%. Some investors aren't sure that trade tensions will escalate, and major indexes have tended to stabilize following initial drops as the trade fights have escalated. The US gold price was down 0.5% to 1,267.60/oz. 

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20/06/2018 - Argonaut Morning Note

Global stocks dropped intraday as trade tensions between the U.S. and China intensified, sparking selling from Shanghai to New York. The Dow Jones Industrial Average tumbled 287 points, or 1.1%, to 24700. The S&P 500 fell 0.4% and the Nasdaq Composite fell 0.4%. Shares of industrial and materials companies, which analysts fear could take a heavy hit under a trade war, were the S&P 500's worst-performing sectors, falling 2% and 1.9%, respectively. Utilities, real estate and consumer staples-groups that investors often flock to in times of market volatility -  all climbed. The swings in the U.S. stock market came after Asian investors dumped Chinese stocks, sending the Shanghai Composite Index down to its lowest level in almost two years, and the Shenzhen A Share index shedding 5.8%. Investors also unloaded stocks elsewhere, and the Stoxx Europe 600 closed down 0.7%. The US gold price was down 0.3% to 1,274.40/t.

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19/06/2018 - Argonaut Morning Note

U.S. stocks slid Monday as escalating trade tensions between the U.S. and China weighed on investors' appetite for risk. The Dow Jones Industrial Average was down 0.4%. The S&P 500 dropped 0.2%, while the Nasdaq Composite fell less than 0.1%. President Donald Trump approved tariffs of 25% on about $50 billion of Chinese goods on Friday, prompting Beijing to hit back by announcing the country would levy penalties on hundreds of U.S. goods. The moves exacerbate concerns among investors that the world's two biggest economies could descend into a trade war. Rising frictions in international trade in recent months already have instilled uncertainty in global markets, which are experiencing one of their most volatile stretches in years. Concerns about the fate of the North American Free Trade Agreement and tariffs that the Trump administration imposed on European allies also are adding to investor anxiety. The US gold price was down 0.1% to 1,277.90/t

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18/06/2018 - Argonaut Morning Note

The Dow Jones Industrial Average posted its biggest one-week slide since March, as mounting fears over a potential trade war sent shares of industrial firms lower. After months of exchanging threats, the U.S. and China unveiled plans Friday to hit each other with tariffs on billions of dollars in goods. The moves marked the latest deterioration of relations between the world's two biggest economies, something that has kept investors and analysts on guard in recent months. Even as U.S. economic data have been relatively upbeat, with reports this week showing retail sales soaring and jobless claims falling, many remain wary of the possibility that restrictive trade policies could hit a wide range of industries and derail the global economy. Those fears have capped investors' appetite for risk, many say, explaining why the stock market has struggled for momentum. The Dow Jones Industrial Average fell 0.3%, to 25090 on Friday for a loss of 0.9% this week, while the S&P 500 fell 0.1%, to 2780. The Nasdaq Composite lost 14.66 points, or 0.2%, to 7746.38 but added 1.3% for the week, buoyed by gains in the technology sector. Shares of agricultural and industrial companies, which some fear could be especially vulnerable to punitive trade measures from China, were hit by a fresh wave of selling. The US gold price was steady at 1,301.90/t.

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15/06/2018 Argonaut Morning Note

U.S. stocks stabilized intraday, suggesting investors are coming to terms with central banks' plans to gradually leave behind a decade of unprecedented monetary stimulus.  The Dow Jones Industrial Average waffled between small gains and losses and was recently off 0.1%, at 25,175. The S&P 500 rose 0.2%, and the technology-heavy Nasdaq Composite gained 0.8%. All three indexes slumped in the previous session. After the Federal Reserve signalled Wednesday that U.S. interest rates will likely go up four times in 2018 - instead of three, as had been widely believed - the European Central Bank said it would end its bond-buying program in December. But the central bank reassured markets by pledging that rates in the Eurozone wouldn't start to rise at least until summer of next year.  The US gold price gained 0.2% to record 1301.90/t.

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