FYI: Global stocks dipped on Friday as rising tensions in the Middle East added to concerns over global growth and trade, driving investors to haven assets.
In Europe, the Stoxx 600 fell 0.4% in opening trade. That followed a downbeat session in Asia, with indexes in China, Korea and Hong Kong all lower, though Japan’s Nikkei managed a 0.4% climb.
Late Thursday, the U.S. said Iran was behind an attack that day on two oil tankers in the Gulf of Oman that sent oil prices soaring. That added to an already tense situation in the crucial shipping channel after an attack on four other tankers last month.
Investors Friday were buying government bonds, gold and the Japanese yen, all assets generally considered havens when risks are growing.
The yield on 10-year U.S. Treasurys, which falls as the price rises, slipped to 2.059% on Friday from 2.096% on Thursday. Yields on Germany’s equivalent government bond fell deeper into negative territory and were last at -0.260%.
Gold prices hit a 14-month high amid the rising tensions. Spot gold was last up 1% at $1,356.70 a troy ounce. The yen also rose 0.1% against both the euro and U.S. dollar.
European stocks most exposed to oil prices and global trade were registering the biggest drops on Friday. The Stoxx Europe 600’s technology subindex was down 1.1% while its autos & parts subindex was 0.6% lower.
In Asia, the Shanghai Composite was down 1%, while the Shenzhen index was 1.8% lower. Hong Kong’s Hang Seng was down 0.7% amid protests in the city against an unpopular extradition bill. Data later in the day showed China’s industrial output slowed, adding to fears the country’s economic growth was faltering.
U.S. retail sales data due later Friday will be closely watched by investors as they look for clues on the nation’s largely consumer-driven economic growth, analysts said.
The release is also the last major U.S. economic report before a meeting of the Fed’s policy-making committee next week.
Regards,
Ted
MarketWatch:
https://www.marketwatch.com/story/stocks-open-lower-friday-as-broadcoms-weak-outlook-reminds-wall-street-of-us-china-trade-battle-2019-06-14/printWSJ:
https://www.wsj.com/articles/stocks-slip-as-middle-east-tensions-boost-haven-assets-11560499874Bloomberg:
https://www.bloomberg.com/news/articles/2019-06-13/asia-stocks-head-for-mixed-start-yields-retreat-markets-wrapReuters:
https://www.reuters.com/article/us-global-markets/bond-yields-slip-stocks-suffer-on-cooling-china-data-idUSKCN1TF03PIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-broadcom-warning-apple-stock-market-rally-amd-stock/CNBC:
https://www.cnbc.com/2019/06/14/stock-market-middle-east-tensions-weigh-china-data-in-focus.htmlU.K.
https://uk.reuters.com/article/uk-britain-stocks/heavyweight-financials-exporter-stocks-drag-ftse-100-lower-idUKKCN1TF0OKEurope:
https://www.reuters.com/article/us-europe-stocks/chipmakers-drive-european-shares-lower-after-broadcom-shock-idUSKCN1TF0ODAsia:
https://www.marketwatch.com/story/asian-markets-mixed-as-global-tensions-rise-on-apparent-oil-tanker-attacks-2019-06-13/printBonds:
https://www.cnbc.com/2019/06/14/us-treasury-yields-continue-to-slide-as-middle-east-tensions-escalate.htmlCurrencies:
https://www.cnbc.com/2019/06/14/forex-market-federal-reserve-meeting-us-china-trade-war-in-focus.htmlOil:
https://www.cnbc.com/2019/06/14/oil-market-middle-east-tanker-attacks-us-iran-tensions-in-focus.htmlGold:
https://www.cnbc.com/2019/06/14/gold-market-fed-rate-cut-expectations-middle-east-tensions-in-focus.htmlCuirrent Futures:
https://finviz.com/futures.ashx 
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