“Summer afternoon, summer afternoon; to me those have always been the two most beautiful words in the English language” – Henry Jam
Trade Concerns & More Tariffs Lead Markets Downward
As efforts to strike a trade deal continued, markets were less-than-optimistic about a resolution. Monday saw more threats from Washington, as U.S. President Trump threatened to impose $200 Billion of tariffs on Chinese goods.
Tuesday saw U.S. Trade Representative Robert Lighthizer reiterating amidst continued talks that “come Friday there will be tariffs in place.” Markets, growing ever weary of tariff threats as a negotiating tool, sold off, with the Dow Jones Industrial Average dropping by more than 470 points.
Wednesday found the TSX and Dow Jones rebounding on the heels of oil, as well as more hopeful comments from the White House about a trade deal; however, the S&P 500 and Nasdaq both lost ground.
On Thursday, markets declined again, though losses were pared as markets neared their respective closes. Chinese President Xi Jinping’s “beautiful” letter to President Trump, urging him to work to get a deal done, helped minimize declines on the day.
Finally, Friday. The U.S. carried through on its threat, raising $200 Billion tariffs on Chinese goods. Despite this tariff enactment, White House comments speaking of “constructive talks” with China led markets higher, though no deal was struck.
For the week, The S&P 500 and Nasdaq suffered their largest weekly percentage declines of 2019. The Dow Jones declined as well by 2.12%. The TSX was down by 1.19%.
Weekly Update – By The Numbers
- The TSX closed at 16,298, down -196 points or -1.19% over the past week. YTD the TSX is up 79%.
- The DOW closed at 25,942, down -563 points or -2.12% over the past week. YTD the DOW is up 21%.
- The S&P closed at 2,881, down -65 points or -2.21% over the past week. YTD the S&P is up 92%.
- The Nasdaq closed at 7,917, down -247 points or -3.03% over the past week. YTD the Nasdaq is up 32%.
- Gold closed at 1,287, up -8.00 points or 0.55% over the past week. YTD gold is up 16%.
- Oil closed at 61.71, down -0.16 points or -0.26% over the past week. YTD oil is up 65%.
- The USD/CAD closed at 0.7457, up 0.0007 points or 0.09% over the past week. YTD the USD/CAD is up 76%.
- The MSCI closed at 2,126, down -28 points or -1.30% over the past week. YTD the MSCI is up 79%.
- The Euro Stoxx 50 closed at 3,361, down -142 points or -4.05% over the past week. YTD the Euro Stoxx 50 is up 00%.
- The FTSE closed at 7,203, down -178 points or -2.41% over the past week. YTD the FTSE is up 06%.
- The CAC closed at 5,327, down -222 points or -4.00% over the past week. YTD the CAC is up 60%.
- DAX closed at 12,060, down -353.00 points or -2.84% over the past week. YTD DAX is up 22%.
- Nikkei closed at 21,345, down -914.00 points or -4.11% over the past week. YTD Nikkei is up 65%.
- The Shanghai closed at 2,939, down -139.0000 points or -4.52% over the past week. YTD the Shanghai is up 84%.
- The 10-Yr Bond Yield closed at 2.46, down -0.0700 points or -2.77% over the past week. YTD the 10-Yr Bond Yield is down -8.55%.
Sources: Globe Advisor, Advisor.ca, Dynamic
This information is provided for general information purposes only. It does not constitute professional advice. Please contact a professional about your specific needs before taking any action.