With volatility awaiting trade negotiations, US markets retreat on manufacturing and tariffs

With volatility awaiting trade negotiations, US markets retreat on manufacturing and tariffs

The dollar was hit with its largest losses in seven weeks on Monday and the S&P 500 slid the most in in almost two months as trade worries re- surfaced and the US factory sector failed to generate an anticipated turnaround. Manufacturing struck the first blow. The recovery that was hoped for after the September purchasing managers’ index post-recession low of 47.8 turned up to 48.3 in October and had been forecast to continue to 49.2 in November failed to materalize. November manufacturing PMI dropped to 48.1. The index for new orders had climbed from 47.3 in September to 49.1 in October. It fell back 1.9 points to 47.2 in November. Employment which had gained 1.4 points to 47.7 in October shed 1.1 points back to 46.6. New export orders had soared 9.4 points in October and into expansion at 50.4 lost 2.5 points to 47.9 last month. The dollar fell immediately against the euro after the 8:30 am release from 1.1004, losing 30 points in the first hour and continuing lower for the rest of the day ending just off the low at 1.1085. The greenback initially held its ground versus the yen but then the second blow fell. President Trump announced via twitter that the US would restore tariffs on steel and aluminum from Argentina and Brazil, nations he accused of cheapening their currencies to compete with US agriculture. Dollar yen fell 30 points on the news from 109.53 and weakened through the day closing at 108.86, […]

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