New concerns over US-China talks

Daily Analysis - 08/02/2019

Asia markets decline due to US-China Concerns


On Friday Asia equities moved lower due to increasing anxieties over the trade dispute between the U.S. and China. Japan's Nikkei 225 dipped more than 2.0% to close at around 20,333.15 while the index heavyweight Fast Retailing dropped more than half percent. The Topix dropped about 1.8% to end at 1,539.39 while Sony, on the other hand, opposed the general descending trend and gained about 4.0% following the company publishing its first-ever share buyback of $910 million. South Korea's Kospi also slid more than1.0% to end its trading week at around 2,177.04 while the ASX 200 in Australia fell 0.34% to close at 6,071.4.

Dow falls more than 200 points

On Thursday Stocks declined since it became more obvious that a trade gathering between President Donald Trump and Chinese President Xi Jinping is not going to take place before March deadline. The S&P 500 retrace back more than 0.9% to close at 2,706.04 while the popular Dow Jones Industrial Average fell 220.72 points to 25,169.50 as Apple and DowDuPont drove the drop.  The Nasdaq Composite fell about 1.2% to 7,288.34.


Economic slowdown drives the oil lower

On Friday, Oil declined due to fears of an economic slowdown. But supply cuts directed by U.S. sanctions against Venezuela and producer club OPEC presented some support. International Brent crude oil futures fell by 44 cents, at $61.18 per barrel, after dropping more than 1.5% the previous trading session. The U.S. West Texas Intermediate (WTI) crude futures were at $52.19 per barrel down about 43 cents, from their last close. WTI fell by around 2.5% the previous session.


Dollar gains due to US-China

On Friday the popular greenback locked near a 14-day top, while the desire for safe-haven assets increased over fears regarding the U.S.-China trade discussions and broader worries about slowing global growth.

Those anxieties created on Thursday following the European Commission cut its forecasts for Eurozone economic growth this year and next.

Investors' fears regarding the global economy were also increased by comments from U.S. President Donald Trump, who announced that he did not intend to meet with Chinese President Xi Jinping before the March deadline to reach a trade deal.


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