United States stocks fall on Hong Kong protests, trade worries

United States stocks fall on Hong Kong protests, trade worries

In Asia on Tuesday benchmark 10-year Treasuries yields fell to 1.6471 per cent.

This week's selloff in Hong Kong stocks accelerated, with the Hang Seng Index falling 2% Tuesday amid continued unrest.

Defensive plays such as real estate and telecom were among the few sectors in the black.

"I don't think the trade war is going to end any time soon, it could drag on into 2020. then you have geopolitical concerns", said Ryan Nauman, market strategist at Informa Financial Intelligence in Zephyr Cove, Nevada.

Trade-related worries have pulled the benchmark S&P 500 about 4% away from its all-time high hit in late-July. -China trade war leading to a recession were growing and that it no longer expected a trade deal before the 2020 US presidential election.

The wild swings follow President Donald Trump's threat to impose more tariffs on Chinese goods, followed by China's move to allow its currency to weaken.

The US budget deficit so far in 2019 has already grown larger than the entire deficit for previous year.

Trump has said he'd be "fine" if the USA and China don't go ahead with a meeting next month, dampening investors' hopes for a path to resolving the economically damaging trade war. Traders usually seek the shelter of dividend-friendly utilities and bonds when they want a more secure place to put their money because of concerns over economic growth. The company's revenue edged higher on growth from its USA operations. Viacom shares fell 4.4%.

All three major USA stock indexes started the week in the red, with few earnings reports and no economic data to soothe market jitters over protests in Hong Kong, the rejection of Argentine President Mauricio Macri's economic agenda in primary elections, and a tariff dispute that has beleaguered markets for months.

Coach owner Tapestry Inc and Versace owner Capri fell more than 4% as their brands came under heavy criticism on Chinese social media over selling T-shirts that showed Chinese-controlled territories of Hong Kong and Macau as countries.

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Traders were also on edge after market-friendly Argentine President Mauricio Macri suffered a mauling in presidential primaries, increasing the risk of a return to interventionist economic policies.

Investors are facing a relatively slow week as far as economic reports and corporate earnings.

Later in the day, investors will pay close attention to the Labor Department's July consumer-price index for signs of strengthening inflation, to gauge what impact it may have on the Federal Reserve's interest-rate decisions.

Second-quarter reporting season is approaching the finish line, with 452 of the companies in the S&P 500 having reported.

ENERGY: Benchmark U.S. crude lost 17 cents to $54.76 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude oil, the worldwide standard, added 4 cents to close at $58.57 a barrel.

The British pound was little changed at US$1.2078. Heating oil was also unchanged at $1.81 per gallon.

The dollar fell to 105.27 Japanese yen from 105.57 yen on Friday.

Financial markets have performed poorly even after the Federal Reserve granted investors' wishes by lowering interest rates in late July, the first rate cut in almost 11 years.

Spot gold rose 0.3 percent to $1,515.32 per ounce as of 0334 GMT, after hitting its highest since April 2013 at $1,518.03. The euro strengthened to $1.1219 from $1.1207.

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