Monday marked another sinking and reclining day for the global stock market. Stocks worldwide and oil prices dropped as trade tensions between US and China escalated.
In Europe, Germany’s DAX dropped by 1.3%, settling at 12,414, whereas the FTSE 100 of London dropped by 1.4%, settling at 7,575. Moreover, the CAC 40 of France dropped by 0.8%, settling at 5,343. On the other hand, on Wall Street, the future of the Dow Jones industrial average dropped by 0.7% and the S&P 500 index fell by 0.5%.
In Asia, the Shanghai Composite Index dropped 1.1%, settling at 2,859.34, whereas, Hong Kong’s Hang Seng dropped by 1.3%, as it settled at 28,961.39. Moreover, the Nikkei 225 of Tokyo dropped 0.8%, as it settled at 22,338.15 and the Kospi index in Seoul stayed flat at 2,357.88. Sydney's S&P-ASX 200 also seemed to have lost 0.2%, as it settled at 6,210.40 and Sensex in India retreated by 0.3%, as it settled at 35,600.41. Most of the benchmarks in Taiwan and Southeast Asia dropped but New Zealand’s indexes were changed.
Contrarily, energy sectors, including the Benchmark US crude, increased by 33 cents, settling at $68.91 a barrel during electronic trading at the New York Mercantile Exchange because of concerns and questions over the ability of OPEC to increase its production. The dollar dropped to 109.58 yen from a previous level of 109.97 yen on Friday. The euro also gained value from a previous $1.1657 to $1.1697.
In the yields realm, the yield on the 10 Year Treasuries fell by 1 basis point to 2.88%, which was its lowest in over 3 weeks. Moreover, the 10-year yield on Germany’s dropped by 1 basis point, settling at 0.33%, which was its lowest in four weeks. Moreover, Britain’s 10-year yield dropped by 1 basis point, settling at 1.308%.
Gold also dropped but less than 0.05%, as it settled at $1270.02 per ounce and Brent crude dropped by 1.4%, settling at $74.49 per barrel.
The sentiment in the stocks market, energy, and crude, all hinted towards the fact that the market is continuing to struggle amidst escalating trade tensions between US and China. Moreover, today, Trump announced that he would be stringent in his application of tariffs on other US trade partners as well and its effects are being felt in Europe already. Therefore, European stocks remained low as the week started, and so did the rest of the stock market.