Published: Fri, December 07, 2018
Money | By Ralph Mccoy

'Tariff Man' Trump’s China Tweets, Recession Fears, Push Dow Down 800 Points

'Tariff Man' Trump’s China Tweets, Recession Fears, Push Dow Down 800 Points

The S&P 500 opened lower by 7.94 points, or 0.28 per cent, at 2,782.43. The Nasdaq fell 283 points, or 3.8 percent, to 7,158. Investors' confidence in that truce faltered Tuesday, contributing to renewed fears that the disagreement between the two economic powerhouses could slow the global economy.

While the more closely watched part of the Treasury yield curve - the gap between two-year and 10-year yields - remains upwardly sloped, it flattened to just 15 basis points Monday. An inverted yield curve has also preceded each recession of the last 60 years, though sometimes by more than a year.

USA stocks plunged Tuesday as rising concerns that an economic downturn lies ahead and mixed signals from the White House on the state of U.S. The Treasury held auctions for four-week bills at a rate of 2.320% and 52-week bills at a rate of 2.635%. The Russell 2000 index of smaller-company stocks gave up 51 points, or 3.3 per cent, to 1,497. The S&P 600 closed at 925.06 for a loss of 44.71 points or -4.61%.

The Dow Jones Industrial Average sank nearly 800 points today. The Dow plunged 690 points, or 2.8 per cent, to 25,130, more than erasing its 488-point gain over the previous two trading days. Though the S&P 500 Index closed higher on the suspension of tariff escalation, futures retreated Tuesday.

Harbour Asset Managment portfolio manager Shane Solly said the local market's reaction was subdued, reflecting the high proportion of defensive style stocks - such as the power generators - that feature in the local market.

Police arrest 84 in European crackdown on Italian mob
Wednesday's raids come a day after the new suspected head of the Cosa Nostra and 45 other alleged gangsters were arrested. German prosecutors said 65 premises linked to the southern Italy-based organised crime group were also being searched.

Ever Baby Born Following A Uterus Transplant From A Deceased Donor
Doctor Andraus (far left) was the head transplant surgeon involved in the surgery to transplant the donated uterus. The first childbirth following uterine transplantation from living donors occurred in Sweden in September 2013.

Police increasingly concerned for backpacker missing in New Zealand
Ms Millane's roommates at Base Backpackers Hostel, on Queen Street, in the heart of Auckland, said they last saw her on Saturday. Various sightings have her wearing either black top, blues jeans and red sneakers, or a black dress with white shoes.

The trade dispute has rattled markets in recent months as signs emerged that it has begun affecting corporate profits.

"Maybe we're not going to get as dovish a Fed as some think", said Joseph LaVorgna, chief economist, Americas at Natixis in NY. The slide in bond yields, which affect interest rates on mortgages and other consumer loans, weighed on bank stocks. Citigroup fell 4.5 percent to $62.26.

Homebuilders fell after luxury homebuilder Toll Brothers issued a cautious assessment of the housing market. The Organization for Economic Cooperation and Development forecast that global growth would slow from 3.7 percent this year to 3.5 percent in 2019 and 2020. The contract rose 30 cents on Tuesday to close at $53.25. Brent crude, the worldwide standard, added 0.9 per cent to $62.22 per barrel in London. Japan's Nikkei 225 index gave up 2.4 per cent and the Kospi in South Korea lost 0.8 per cent. Hong Kong's Hang Seng added 0.3 per cent.

The trade-sensitive industrial sector .SPLRCI fell 4.4 percent, with Boeing BA.N and Caterpillar CAT.N declining 4.9 percent and 6.9 percent, respectively.

CURRENCY: The dollar slipped to 112.80 yen from 113.20 yen. The euro strengthened to $1.1349 from $1.1342. Germany's DAX lost 1.1 per cent, while France's CAC 40 dropped 0.8 per cent.

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