Markets Right Now: Stocks drop as Dems eye Trump inquiry

Marco Green
September 25, 2019

In Hong Kong the Hang Seng index gained 0.3% to 26,304.05 after Hong Kong leader Carrie Lam told reporters she hoped a "town hall" dialogue this week might be a step forward in the "long journey" to reconciliation after weeks of sometimes violent protests in the semi-autonomous Chinese city.

US Treasury Secretary Mnuchin said that he thinks trade talks with China will resume in two weeks, although earlier he said that the Chinese Vice Premier is coming to the US next week for talks - Therefore, minister-level talks are likely what was being referred to, which is already priced in to the markets expecting such talks to place in October.

The Shanghai Composite index rose 0.3% to 2,985.34 while Japan's Nikkei 225 added 0.1% to 22,098.84.

Mnuchin said the decision was made to avoid confusion.

European stocks were mixed.

It cited "strong external headwinds" for manufacturers, including the prolonged tariffs war between Beijing and Washington that has disrupted trade across the region.

Elsewhere in Asia, the Kospi in South Korea climbed 0.5% to 2,101.04 and Australia's S&P ASX 200 ended flat at 6,127.66. India's Sensex edged 0.1% lower to 39,066.25.

The three major futures indexes are indicating a 0.3 percent rise.

Stocks had their most volatile day in a month Tuesday as a escalating range of Democrats identified as for an impeachment inquiry into President Donald Trump and a report confirmed a decline in shopper self esteem.

U.S. Treasuries yields extended their decline, with the 10-year rate falling to 1.716% US10YT=RR , edging down further from 1.908% marked on September 13.

In the on-again, off-again world of trade talks, U.S. Treasury Secretary Steven Mnuchin said late Monday that U.S.

The drop in the measure of USA consumer confidence for August is worrisome for Wall Street because the US consumer spending accounts for 70% of the economy and has been consistently strong even as other benchmarks of economic growth, such as manufacturing, have slowed.

Benchmark crude oil lost 57 cents to settle at $58.07 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude oil, the global standard, dropped $1.67 to close at $63.10 a barrel.

The Canadian dollar traded for an average of 75.48 cents U.S. compared with an average of 75.36 cents United States on Monday. The euro strengthened to $1.1018 from $1.0995. Moreover, Germany's manufacturing PMI reading dropped to its lowest level in almost seven years, France's industrial sector posted sluggish growth, and Japan's manufacturing gauge signaled a sharper contraction.

Germany is Europe's largest economy and often acts as an indicator for the continent's overall economic health.

European shares closed near flat, as Brexit uncertainty and the USA consumer data helped fan persistent growth worries.

Other reports by Click Lancashire

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