Investors Remain on Edge

Aug 13 10:08 2019 Print This Article

Overview:  The confrontation in Hong Kong and the fallout from the Argentine primary over the weekend join concerns the conflict between the two largest economies and slower growth to force the animal spirits into hibernation.  Global equities remain under pressure.  Japan's Topix joined several other markets in the region to have given up its year-to-date gain.  The MSCI Emerging Markets equity index is not from doing the same.  European shares are faring better, and with today's roughly 0.6% loss, the Dow Jones Stoxx 600 is up almost 9.2% this year.  US shares are trading lower, which if sustained, would leave the S&P 500 up just shy of 15%.  Bond yields are lower, and several European sovereign bond yields are at new record lows.  The first European corporate 10-year bond (Nestle) yield slipped into negative territory.  Italy's vote of confidence looks more likely for next week, and this is allowing Italian bonds to stabilize after yields surged in recent days.  China's 10-year yield briefly dipped below 3% for the first time in three years.  The US 30-year yield is slipping closer to the record low near 2.08%.  The US dollar is firm against most of the world's currencies, with the notable exception of the yen and Australian dollar.

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About Article Author

Marc to Market

Marc Chandler has been covering the global capital markets in one fashion or another for more than 25 years, working at economic consulting firms and global investment banks. Chandler attended North Central College for undergraduate work, where he majored in political science and the humanities. He holds master's degrees from Northern Illinois University and University of Pittsburgh in American History and International Political Economy. Currently Chandler teaches at New York University Center for Global Affairs, where he is an associate professor. A prolific writer and speaker he appears regularly in the press and has spoken for, and is an honorary fellow of, the Foreign Policy Association. In addition to being quoted in the financial press daily, Chandler has been published in the Financial Times, Foreign Affairs, and the Washington Post. In 2009, Chandler was named a Business Visionary by Forbes. In 2009, his book, Making Sense of the Dollar, was published by Bloomberg Press and received a Bronze Award from Independent Publishers.

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