Stock Markets Continue To Plummet As Trade Fears Continue

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1.  Stock Markets Continue To Plummet As Trade Fears Continue

Global markets continued to maintain a risk off mood with global stock markets edging lower. Equities in the US fell sharply on Tuesday while Asian markets are also headed for a bearish close. European stocks were seen mixed Wednesday morning as the escalating threat of a trade war between the U.S. and China continues to weigh on major markets.*


2. Safe Havens Rally

Gold prices rose to their highest in more than a week on Wednesday over renewed worries over U.S.-China trade dispute and its potential impact on global growth. Spot gold was last seen trading at 1285.99, up 0.12% as of 7:32 GMT this morning. Other safe havens also gained with the USD/JPY dropping below the 110 support mark to later recover at 110.14 as of 7:30 GMT this morning.**


3. NZD/USD Plummets on RBNZ Rate Cut

The Reserve Bank of New Zealand (RBNZ) opted to lower its official cash rate by 25 basis points this morning, pushing the NZD/USD below its previous lows for 2019. The NZD/USD may be facing a further drop as the currency will be sold against the dollar and the yen as risk appetite is damped by uncertainty over trade negotiations between US and China.***


4. Bitcoin Leads Cryptocurrency Dive

Bitcoin plunged this morning after Binance lost 7000 BTC in a hack. BTC/USD was last 1.76% lower at $6124.0 as of 7:40 GMT this morning. The entire crypto community is now in shock and other major crypto pairs are also in the red. Specifically, Ethereum was last seen 5.1% lower at $176.89, DASH lost 4.88% at $116.90 and Litecoin dipped 4.1% at $72.82.****


5. Oil Prices Rise

Oil prices rose on Wednesday as U.S. sanctions on crude exporters Iran and Venezuela as well as ongoing supply cuts by producers have left markets tight just as crude imports to China rose to a record for April. U.S. West Texas Intermediate (USOIL) crude futures were at $61.69 per barrel at 7:42 GMT on Wednesday, 44 cents, or 0.5 percent, above their last settlement. U.S. sanctions on Iran and Venezuela supported oil prices while rising China oil imports also showed a healthy increase. It should be noted any negative developments on the US/China trade standoff may cut today’s oil rally short.**


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*Financial Times May 8, 2019 2:48 AM ET
**Reuters May 8, 2019 3:53 AM ET
***CNBC May 8, 2019 03:07 AM ET
****ethereumworldnews May 8, 2019 7:03 AM GMT

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