European Equity Markets indices finished Tuesday’s session lower, as traders across the globe continued to show concern over the possibility of a trade war between the U.S. and China. The Euro Stoxx 600 ended 0.7% down. The U.K.’s FTSE 100 fell 0.36%, despite weakness from British miners, while France’s CAC 40 fell 1.10% and Germany’s DAX slipped 1.22%.
US Equity Markets stocks fell on Tuesday as an escalation in the trade dispute between the United States and China unnerved the markets. The S&P 500 lost 0.41%, to 2,762.43 and the Nasdaq Composite fell 0.32%, to 7,722.09. Shares of chip-makers, which depend on China for a large portion of their revenue, slipped. Shares of Boeing, which has been a proxy for trade-war tensions with China, fell 3.9%, weighing the most on the Dow.
Asian Equity Markets trading was mixed on Wednesday. Markets in South Korea shrugged off trade-related concerns to edge up, with the Kospi rising 0.59% as large-cap technology names traded higher. Among index heavyweights, Samsung Electronics added 0.64% and steelmaker Posco gained 0.59%.
Forex Markets The USD/JPY was little changed at 110.08 yen following its retreat to an eight-day trough of 109.55 on Tuesday. The AUS/USD, considered sensitive to shifts in sentiment towards China, fell to a 13-month low of $0.7347 on Tuesday before pulling back slightly to $0.7386.
Commodities Markets oil prices recovered supported by a decline in U.S. commercial crude inventories and the loss of storage capacity in oil producer Libya. U.S. crude inventories fell by 3 million barrels to 430.6 million barrels in the week to June 15, according to API in a weekly report on Tuesday. Brent crude futures rose 18 cents, or 0.2%, to $75.26 per barrel, compared with their last close on Tuesday. U.S. West Texas Intermediate crude futures gained 20 cents, or 0.3 percent, to $65.27.
Bond Markets U.S. Treasury yields retreated on Tuesday as trade tensions between China and the United States intensified after President Donald Trump threatened to impose a 10 percent tariff on $200 billion of Chinese goods while Beijing warned it would fight back. U.S. benchmark 10-year yields fell to a three-week low of 2.853 percent, from Monday’s 2.926 percent. They ended Tuesday at 2.894 percent. U.S. two-year yields fell to a two-week low of 2.496 percent, compared with 2.558 percent late on Monday. Two-year yields ended Tuesday at 2.549 percent.