So much for a 'Santa rally': Trump's trade war is sending the S&P 500 toward its worst December since 2002
Business Insider
Published Dec 10, 2018 05:24AM ET
Updated Dec 10, 2018 09:58AM ET
- Stocks in Asia and Europe and futures in the US continued their decline after Friday's sell-off in the US, as President Donald Trump's trade war worries investors.
- China ratcheted up trade tensions over the weekend following the arrest last week of Huawei's chief financial officer, Meng Wanzhou. Weak Chinese trade and inflation data and a slump in Japan's economy have also hurt sentiment.
- In Europe, Germany's DAX slumped on weak export data, while UK government disarray added to uncertainty.
Hopes for a Santa rally are fading fast, with fears over US President Donald Trump's trade war with China helping to send the S&P 500 toward its worst December in 16 years.
Asian markets kicked off what looks to be a bearish day for global stocks on Monday on growing concerns over global economic growth and the US-China trade war. European stocks and US futures also fell.
Tensions over trade between the US and China heightened even further as China summoned the Canadian and US ambassadors over the weekend regarding the arrest of Huawei's chief financial officer, Meng Wanzhou, in Canada last week. China has down from an estimate of 0.4%.
Investors in the US are also still jittery about the Treasury "yield curve," a wonky market event that can signal a recession. The outlook between the two-year and 10-year government bonds stayed flat, but investors are concerned the curve will invert, which would add weight to any forecasts for a slump in growth.
"Bond markets have been more accurate than stock markets in predicting economic slowdowns," said Hussein Sayed, the chief market strategist at ForexTime. "It looks like a matter of time before the long end of the curve inverts too. While this doesn't necessarily indicate a recession is imminent, it's a bold warning signal."
Elsewhere in markets, Friday's agreement between OPEC and Russia sent oil prices initially higher, with Brent crude trading up 0.6% before dropping 1.5% at 10:40 a.m. in London (5:40 a.m. ET).
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Written By: Business Insider
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