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Markets jolted by Hong Kong unrest, Argentine peso crash

Credit: Reuters Studio
Published 2 weeks ago - Duration: 01:40s

Markets jolted by Hong Kong unrest, Argentine peso crash

Shares fell on Tuesday, as negative news from around the globe including Italy and Argentina's political uncertainty and persistent unrest in Hong Kong, compelled investors to take refuge in safe harbors like bonds and gold.

David Pollard reports.

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Markets jolted by Hong Kong unrest, Argentine peso crash

A currency down 15 per cent, stocks down 30.

By any measure, shocking headlines ..

And for Argentina the worst such asset moves since its 2001 debt crisis.

Traders there reacting to market-friendly Mauricio Macri's mauling in presidential primaries.

For traders elsewhere, it adds to worries over Sino-US trade tensions ..

And a growing anxiety over Hong Kong - where anti-China protesters brought the airport to a standstill on Monday.

Its market index fell 1.7% to a seven-month low.

Asia's other major bourses had losses of a per cent or more.

Europe's open saw Spanish shares hit their weakest since January as investors dumped Argentinian assets.

While Italy's bourses weakened on a new round of political uncertainty ..

After far-right League chief Matteo Salvini's call for snap elections.

(SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "Should Mr. Salvini become prime minister the mood against Europe would pick up a new momentum.

It could lead other euro zone countries teaming up against Brussels." Germany's DAX was under further pressure after the ZEW survey said economic sentiment fell by far more than expected last month.

It all put safe havens even more in fashion.

10-year Treasury yields were close to three-year lows, gold close to six-year highs - and the yen just shy of a seven-month peak against the dollar.

Oil, meanwhile, slipped.

The headline there: that US shale output could reach a record high next month..

Adding further supply at a time when global demand, just like market sentiment, is on the retreat.

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