Trump Exonerated, Global Equities Fall On Recession Fear, Asian Markets Lead Rout

Global equities plunge after the U.S. ten-year treasury yield inverts, Trump is cleared of colluding with Russia.
Thomas Hughes
Trade NYSE55

U.S. Investors Breathe A Sigh of Relief

The U.S. index futures were indicating a flat to a mildly positive open for equities markets on Monday. News that the Mueller Report did not conclude Trump or his administration colluded with the Russian’s during the 2016 campaign. According to a summary sent to Congress, the Attorney General finds insufficient evidence to pursue criminal actions.

Investors cheered the Trump news as it alleviates many worries that have been plaguing the market. With the investigation behind us, Trump can turn his focus to finalizing a trade deal with China and the second round of tax cuts to be aimed at working-class America.

In trade news, Secretary of State Steve Mnuchin and Trade Ambassador Robert Lighthizer are going to Beijing later this week. This will be the third round of high-level talks and have the market hopeful a deal will be reached soon. Many experts believe a deal will be struck mid-April but there is no guarantee of that. There is no economic data scheduled to be released today and very little this week. The most important data point will be the PCE Price Index released on Friday.

A Plot To Oust May And Hard Brexit Plague EU Markets

Reports surfaced over the weekend that ministers and MPs opposed to Theresa May’s Brexit plan are plotting to remove her from office. The reports were refuted by May’s allies but do not alleviate the concern of Hard Brexit. The EU has agreed to extend the March 29 deadline but only conditionally. If May cannot garner more support for the Brexit Deal the EU may force a hard-Brexit. The FTSE led the market lower with a loss near -0.60% followed by a -030% decline in the DAX and CAC.

In stock news shares of LVMH plunged more than -8.0% after what was reported as a “fat finger” mistake. A fat finger mistake is when a trader accidentally buys or sells too many of a stock or the wrong stock. The multi-national luxury goods conglomerate recouped much of the loss but were still down about -0.50% at midday. Shares of German pharmaceutical firm Bayer were down about -2.0% after receiving a downgrade from Merril Lynch. The company is facing major damages after a court ruled a man’s cancer was caused by Roundup, a weed killing product produced by Bayer’s Monsanto unit.

Asian Markets Plunge, Japan Down -3.0%

Asian markets plunged in Monday trading because of the U.S. yield curve inversion. A yield-curve inversion is when a longer maturity bond’s yield falls below a shorter-maturity and is widely viewed as a signal of recession. The inversion occurred on Friday when the U.S. 10-year bond yield fell into negative territory and below the 3-month T-bill for the first time in over 10 years.

The Japanese Nikkei led the market lower with a loss of -3.0%. Shares of Softbank and Fanuc were down -5.0% and -3.80% respectively. The Shanghai Composite and Hong Kong Hang Seng were both down about -2.0%. Shares of Tencent led with a loss of -3.0%. The Korean Kospi also fell about -2.0% and was led by SK Hynix -4.0% decline. The Australian ASX posted a more moderate loss of -1.11%.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US