Gold Silver Reports (GSR) – Futures signaled losses for stock indexes in Japan, Hong Kong and South Korea after the S&P 500 Index followed European bourses lower. Reports that the U.S. Treasury will propose limits on Chinese technology investment damped sentiment, though stocks did recoup some losses as National Trade Council Director Peter Navarro said there were no plans to impose restrictions. The dollar weakened and 10-year Treasury yields fell to the lowest in more than three weeks.
“Trade tensions are here to stay,” said Richard Turnill, global chief investment strategist at BlackRock Inc. “Even without a full-blown trade war, escalating frictions could weigh on business confidence and growth.”
Investors are expressing concern about longer-term growth in the U.S. as the gap shrinks between the yield on short and longer dated Treasuries to a fresh post-crisis low……………,
The potential for trade tariffs are also forcing companies to change investment plans: Harley-Davidson Inc. said it would shift some production out of the U.S. in order to mitigate the impact of European Union tariffs targeting its motorcycles…….., and Daimler last week blamed its profit warning on a potential China import-levy hike.
