- Dow Jones s Industrial Average dropped 150 points, Nasdaq & S&P 500 down too
- Goldman Sachs lowers economic growth estimate
- Airport shuts down after thousands protest in Hong Kong
- Demand for gold as a safe haven has its prices surging
- Bitcoin price is trading near $11,350 on low volume
Escalating war dispute between the US and China and that it could tip the US and world economy into recession have the US stock index futures dropping Monday. Goldman Sachs has also lowered its US economic growth estimate for the fourth quarter by 0.2% to 1.8%.
Goldman said the trade war will negatively affect the US economy more than originally thought and expects the planned US tariffs on another $300 billion Chinese imports to go into effect next month.
Though JP Morgan’s head of global equity strategy Mislav Matejka said it’s too early to expect the next US recession, losses accelerated after Hong Kong International Airport canceled all flights for the remainder of the day.
Interesting to see U.S. stock futures take a hit right as the news came out that Hong Kong airport was cancelling all flights due to the protests. pic.twitter.com/fdKdXdO56D
— Tracy Alloway (@tracyalloway) August 12, 2019
Chinese authorities on Hong Kong Protest: The first signs of terrorism
The increasingly violent protests happening since June took a drastic turn today when thousands of anti-government protesters in Hong Kong thronged at the city’s international airport.
The fourth and largest day of airport sit-ins has nearly 200 flights canceled.
HK airport is being completely taken over and all flight cancelled today on Monday afternoon …
It’s on the verge of something major tfw pic.twitter.com/nAFNlG7MFv
— Dovey Wan 🗝 🦖 (@DoveyWan) August 12, 2019
This came after the Chinese authorities condemned the violent demonstrations on the weekend as “deranged” acts that are the “first signs of terrorism.”
Futures on the Dow Jones Industrial Average dropped 150 points, futures on the Nasdaq and Nasdaq were lower as well.
“The bear is alive and kicking. We think the failed breakout last week for the S&P 500 confirms we are still mired in a cyclical bear market,”
Mike Wilson, Morgan Stanley’s chief US equity strategist, said in a note on Monday.
Gold Still Got Room To Go Up, BTC rice Trading Around $11,350
Meanwhile, gold prices climbed higher as safe-haven demand for the yellow metal rises amidst the escalating protests. Analysts are bullish on gold prices as ActivTrades analyst Carlo Alberto De Casa said,
“Rebound in stock markets is weak and there is still room for gold to go up.”
As for Bitcoin, it is currently stuck around $11,350 level while trading volume is about $600 million as per Messari.
Initially, when the protest broke out Bitcoin traded at a premium in mid-June in Hong Kong. Today, BTC/USD was trading at $11,520 on Hong Kong-based exchange Tidebit only to drop down to the same level as other exchanges.