By John-Paul Ford Rojas, business reporter
US stock markets have fallen sharply as a cocktail of global concerns from protests in Hong Kong to elections in Argentina added to deepening worries about the US-China trade war.New York’s Dow Jones Industrial Average was down by nearly 400 points, or 1.5%, as investors turned away from shares to seek safe haven assets such as gold and US government bonds.
It followed volatile trading last week as investors continued to worry about the potential for the spat between Washington and Beijing to hurt an already slowing global economy.A forecast by economists at Goldman Sachs over the weekend that the trade war would drag on with no resolution before the 2020 presidential election did nothing to ease those worries.
Traders in Argentina saw big falls in its currency and main stock index
Turmoil across the globe added to the negative sentiment on Monday.
Protests in Hong Kong were blamed for falls in Asia-focused shares in London, helping pull the FTSE 100 down by 0.4%.
Meanwhile, a big primary election defeat for market-friendly Argentinian president Mauricio Macri prompted a meltdown for traders in Buenos Aires, with the country’s currency and main stock index each plunging by 30%.
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With tensions between the West and Iran also in the background, and little by way of big corporate news to lift the mood, traders in New York ramped up the sell-off.Bucky Hellwig, senior vice president at BB&T Wealth Management in New York, suggested the market might be moving “out of proportion to the events” with many key players away on holiday.”It’s a flight to safety given the global situation, from Hong Kong to the straits of Hormuz,” he said.
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