INSUBCONTINENT EXCLUSIVE:
the US-China trade war jolted financial markets.China on Monday let the yuan tumble beyond the key 7-per-dollar level for the first time in
more than a decade, in a sign Beijing might be willing to tolerate further currency weakness in the face of an escalating trade row with the
United States.Safe-haven assets, including the Japanese yen, government bonds and gold rallied as investors sought to cut back on riskier
assets."I think there's a sense that President Trump might try and escalate in terms of a reaction, if he thinks that this was a
Americas at NatWest Markets in Connecticut.Against the Japanese yen, which investors tend to buy in times of risk aversion, the US dollar
fell 0.38 per cent to its lowest since a January flash crash.The sharp moves in financial markets come after US President Donald Trump
stunned investors last week by vowing to impose 10 per cent tariffs on the remaining $300 billion of Chinese imports from September 1,
abruptly breaking a brief month-long ceasefire in the bruising trade war.On Monday, MSCI's All Country World Index, which tracks shares in
47 countries, extended its slide from last week to dip 1.89 per cent on the day, close to a two-month low.On Wall Street, the main indexes
fell sharply led by technology companies."Trade continues to trend in the wrong direction," said Ryan Detrick, senior market strategist for
LPL Financial in Charlotte, North Carolina."Any hopes of a quick resolution with China are fading quickly."The Dow Jones Industrial Average
fell 489.78 points, or 1.85 per cent, to 25,995.23, the S-P 500 lost 55.68 points, or 1.90 per cent, to 2,876.37 and the Nasdaq Composite
dropped 200.40 points, or 2.5 per cent, to 7,803.67.The pan-European STOXX 600 index fell 2.13 per cent, putting it on pace for its largest
two-day decline in over three years.Worries about a slowdown in global growth due to an extended trade conflict hurt oil prices."The
escalation of trade measures only reinforces concerns over global economic growth and hence by extension global oil demand growth," said
Harry Tchilinguirian, global oil strategist at BNP Paribas in London.Brent crude futures were down $1.53, or 2.47 per cent, to $60.36 per
barrel, while US West Texas Intermediate (WTI) crude futures were down 0.97 cents, or 1.74 per cent, to $54.69 a barrel.Concerns about the
outlook for trade lifted gold to a more than six-year high on Monday
Spot gold was up 1.12 per cent at $1,456.55 per ounce.US Treasury yields tumbled on Monday with 10-year yields hitting their lowest level
since November 2016, as fears over escalation of trade United States -Chinese tensions renewed concerns about an economic downturn, spurring
safe-haven demand for bonds.The yields on benchmark 10-year Treasury notes were down 8.8 basis points at 1.7667 per cent.Get Breaking news,
live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.
