Wall Street opens lower as Trump says trade talks may be ‘extended’

Traders work on the floor of the New York Stock Exchange (NYSE) in New York October 11, 2018. — Reuters pic
Traders work on the floor of the New York Stock Exchange (NYSE) in New York October 11, 2018. — Reuters pic

NEW YORK, Dec 4 — fell at today’s start of trading as investors took a more sceptical view of the new US- trade truce but President Donald Trump held out hope talks could be extended.

yields also pointed to possible trouble, as a spread between short and long-term yields inverted, which some investors feel may be a sign of a looming recession.

A day after helping lead a rally, shares in also fell after another parts supplier revealed concerns about demand for the iPhone

About 15 minutes into the day’s trade, the benchmark Dow Jones Industrial Average had fallen 0.6 per cent to 25,682.01.

The broader S&P 500 fell 0.4 per cent to 2,778.07 while the tech-heavy Nasdaq was a half point lower at 7,403.93.

After yesterday’s rally, investors were freshly sceptical that Washington and Beijing could bridge the substantial divide between the two powerhouse .

Trump and leader Xi Jinping on Saturday announced a 90-day truce, during which they would seek to resolve Washington’s complaints about Beijing’s industrial policies and trade practices.

At the start of trading yesterday, a Trump tweet suggested that March 1 was not a drop-dead date either to conclude a grand bargain or resume this year’s punishing trade war.

“The negotiations with China have already started,” Trump wrote, adding that they would end in 90 days, “unless extended.”

Meanwhile, the yield curve — or the spread between short and long term bond yields sometimes used as a recession predictor — spelled possible trouble, with the rates for the three-year note rising above those for the five-year, while the spread between two and ten-year notes also was unusually thin.

“This is a talking-point issue for the talking heads, who will refer to it as potential signal that a period of slower growth, if not a recession, lays ahead,” Patrick O’Hare wrote at Briefing.com.

“That connection is certainly debatable,” he said, adding that it was likely to help unsettle investors.

Meanwhile, shares of Apple were down about two per cent after parts supplier Cirrus Logic gave a third-quarter warning on smartphone demand and an HSBC analyst became the latest to downgrade the company’s stock on fears of weaker sales. — AFP

Source: The Malay Mail Online

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