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Global markets: stocks fell to G-20, gold soared



(Updated at 16:15)

US index futures declined slightly on Tuesday, along with European and Asian stocks, as geopolitical tensions increased as the G-20 summit approached this week. Gold and yen rose with the search for investors in safe harbors.

Standard & Poor's index futures (S & P 500), Dow Jones and Nasdaq indicate that stocks in New York will open with a slight decrease. All three contracts are above the lowest levels observed at the session. Pharmaceutical manufacturer Allergan has grown strongly in deals before opening after its rival AbbVie agreed to buy the company for $ 63 billion.

While the Stoxx Europe 600 index postponed its decline to the third day, the indices of the indices of Tokyo, Seoul and Sydney in Asia quickly regained their positions after Iran announced that the US sanctions would close the diplomatic decision forever. On the other hand, according to a Bloomberg news report, US President Donald Trump may withdraw from a long-standing defense agreement with Japan, stating that this agreement is unfair to the United States.

As risk aversion continued in the markets, gold rose to a six-year high, and the yen showed the highest level against the dollar since January. After lowering the interest rate on 10-year US Treasury bonds to 2 percent, she restored her decline, and the base interest rate on 10-year German bonds fell to a record level.

In connection with increasing tensions between the US and Iran, as well as the comments of the White House and Xi Jinping's Chinese colleague at the G-20 summit this week, investors are looking for reasons to continue the final rally supported by the central bank. On Tuesday, traders will closely monitor the speech of Fed President Jerome Powell to talk about monetary policy in New York.

On the other hand, West Texas oil (WTI) has fluctuated after an 8 percent increase over the past three days, with investors turning their attention to tensions in the Middle East, and not to the possibility of reducing the OPEC + coalition, increasing production. Bitcoin continued to grow, reaching 11,000 dollars.

Indicative stock indices in Shanghai and Hong Kong led to a decline in the Asian session, while China Merchants Bank depreciated by 10 percent. According to a report in the Washington Post, a US court reported that three major Chinese banks rejected an appeal during an investigation into violations of sanctions against North Korea.

Important market developments are as follows:

* Fed President Jerome Powell will speak on Tuesday at the Council on Foreign Relations in New York. In this speech, Powell will talk about the challenges facing the US economy.
* MSCI Inc. On Tuesday, he will announce the results of the 2019 market classification survey, including the question of whether to raise the status of Kuwait to the status of an emerging market.
* G-20 Summit will be held on Friday and Saturday in Osaka, Japan.

stock

S & P 500 index futures fell 0.1 percent at 8:22 am New York.
* The Stoxx Europe 600 Index fell 0.1 percent to its lowest level in more than a week.
* In the UK, the FTSE 100 index fell by less than 0.05 percent.
* The MSCI Emerging Market Index recorded the largest drop in a week from 0.4 percent.
* The MSCI Asia Pacific Index fell 0.2 percent.

currencies

* The Bloomberg Dollar Spot Index rose by less than 0.05 percent and rose for the first time in a week.
* The euro fell 0.1 percent against the dollar to 1.1389 and fell for the first time in a week.
* The pound fell 0.1 percent against the dollar to 1.273 and fell for the first time in a week.
* Japanese yen rose 0.2 percent against the dollar, reaching 107.10, its highest level in 14 months.

bonds

* The yield on US 10-year bonds fell below its base level to 2.01 percent, its lowest level in two years.
* The yield on German 10-year bonds fell by one percentage point to minus 0.32 percent, testing the lowest level in a week.
* The yield on UK 10-year bonds fell by one percentage point to 0.81 percent.

product

* West Texas oil (WTI) fell 0.2 percent to $ 57.79 a barrel.
* Gold rose 0.5 percent to $ 1,426.16 an ounce, the highest level in six years, and moved to the sixth day.

(Updated at 16:15)


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