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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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US Equity Handover Indices Tumble on Trumps Tariff Tantrum

Article By: ,  Head of Market Research
May 31, 2019 5:09 PM


Headlines

  • US indices closed roughly 1.5% lower across the board to break their widely-watched 200-day moving averages (see here and here for more).
  • The high-yielding REIT (XLRE) and Utility (XLU) sectors were the only two to rise on the day. Energy (XLE) was the weakest sector, losing more than 1.5% today.
  • President Trump’s decision to impose escalating tariffs on Mexican imports roiled risk appetite, taking bond yields sharply lower, with the benchmark 10-year treasury yield falling to 2.15%.
  • US data: Core PCE (April) came in at 1.6% y/y as expected. Traders nonetheless have increased bets that the Fed will cut interest rates this year, with the market pricing in90%+ odds of at least one rate cut this year.
  • Auto stocks were particularly hard hit by the tariff announcement: Ford (F) -2.3%, General Motors (GM) -4.3%, Fiat Chrysler (FCAU) -5.8%

*There are no high-impact earnings releases scheduled for Monday’s Asian session*

Macroeconomic Calendar


*Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.


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