Meanwhile, U.S. stocks fell on Wednesday as investors scurried to the sidelines amid growing concerns over slowing global growth.
Kim Hyesung reports.
Wall Street retreated Wednesday as the U.S.-China trade war continues to show no sign of easing and on concerns over global growth, pushing investors to the relative safety of government bonds.
The S&P 500 closed at its lowest point since March 11... ending under its 100-day moving average for the first time since February.
The Dow Jones Industrial Average shed more than 2-hundred-20 points, or point-9 percent, the S&P 500 lost point-7 percent, and the Nasdaq point-8 percent.
This as U.S.-China trade tensions continued to weigh on stocks after Chinese state media suggested Beijing may slash exports of rare-earth minerals, a key component in devices ranging from smartphones to TVs, opening another front in its trade war with the U.S.
"The U.S. economy has been solid this year. All the indicators have been better than expected. But the trade conflict with Beijing could not only hurt the Chinese economy, but also the U.S. and the global economy, affecting intermediary goods and trade. The Trump Administration's latest currency tariff threat is also a huge risk factor that could hurt global trade and growth."
As uncertainties over U.S.-China trade tensions continue to grow, global bonds maintained their rally, pulling down yields.
The yield gap between the U.S. 10-year Treasury note and the 3-month Treasury bill, often watched as an early signal of a pending recession, slid to a twelve-year low of minus 13 basis points.
The U.S. dollar rose for a third day versus its major peers, including the Japanese yen.
Gold, another investor safe haven, climbed... and oil retreated.
Kim Hyesung, Arirang News.
