U.S. stocks slide, sterling recovers

NEW YORK, New York – U.S. stocks resumed trading on Tuesday after the holiday weekend.

Prices turned south from the get-go and stayed that way with little positive news on the horizon. New trade tariffs, imposed by the United States and China kicked in on Sunday.

The British pound was the center of attraction Tuesday, tumbling in Asia, before recovering in the European and U.S. time zones.

At the close of trading Tuesday, the Dow Jones index was down 285.26 points or 1.08% at 26,118.02.

The Nasdaq Composite shed 88.72 points or 1.11% to 7,874.16.

The Standard and Poor’s 500 slid 20.19 points or 0.69% to 2,906.27.

On foreign exchange markets it was a roller-coaster ride for sterling. The pound fell to a low of 1.1958 in Asia, before the British parliament began moves to ensure Britain does not leave the EU without a withdrawal agreement in place. Prime Minister Boris Johnson had a member of his party defect to the opposition, almost certainly ensuring a no-deal Brexit will not remain an option. More likely an election could be held.

Around the New York close on Tuesday, the pound had recovered to 1.2086.

The euro was slightly stronger at 1.0973, as was the Japanese yen at 106.06. The Swiss franc rose to 0.9875.

The Canadian dollar was slightly weaker at 1.3332, however the Australian and New Zealand dollars rallied to 0.6761 and 0.6331 respectively. The Reserve Bank of Australia on Tuesday left official interest rates unchanged at 1.00%.

In overseas markets, London’s FTSE 100 fell 0.19%. The German Dax dropped 0.36%, while in Paris, the CAC 40 declined 0.49%.

In Asia, the Shanghai Composite in China closed 6.05 points or 0.21% higher at 2,930.15.

The Nikkei 225 in Japan was 4.97 points or 0.02% higher at 20,625.16.

The Australian All Ordinaries lost 4.00 points or 0.06% to 6,673.50.

In Hong Kong, the Hang Seng closed 98.70 points or 0.39% lower at 25,527.85.

Published at Tue, 03 Sep 2019 20:09:53 +0000

Source: U.S. stocks slide, sterling recovers.

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