International Market Roundup
US Stocks slid on Friday as a deepening economic crisis in Turkey dragged on bank shares a triggered a move out of riskier assets. The Dow and S&P500 posted declines for the week following five straight weeks of gains, but the S&P 500 remains just 1.4 percent below its record high from January 26.
A drop in technology shares added to the day’s bearish tone. The S&P technology index fell 0.8 percent, with intel down 2.6 percent after Goldman Sachs downgraded the stock to “sell.” Microchip Technology shares fell 10.9 percent after a disappointing second-quarter revenue forecast.
A slump in the Turkish Lira worsened after US President Donald Trump doubled tariffs on steel and aluminium imported from the country. Investors fled to safe-haven assets, pushing the dollar higher and weighing on US bond yields. “It was a classic risk-off move” said Quincy Krosby, chief market strategist at Prudential Financial in New Jersey. “You worry about the collateral damage. You worry about the effects on Europe. You have banks losing because the 10-year US Treasury yield came down.”
Morning Note - Monday 13th August