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Trade deal 'wait' spooks markets

Key market indices in London, Australia and North America closed lower yesterday and futures were also down, on increasing fears of ongoing trade tensions rather than a US-China truce.
Trade deal 'wait' spooks markets Trade deal 'wait' spooks markets Trade deal 'wait' spooks markets Trade deal 'wait' spooks markets Trade deal 'wait' spooks markets

Wind power at Glencore's Raglan mine in northern Canada

Staff reporter

The US has warned of tariffs on French goods after hitting Brazil and Argentinian metal imports this week and yesterday president Donald Trump told reporters in London a trade deal with China may have to wait until after the US presidential election in November 2020.

Despite yesterday's dip, the S&P500 was still up 23% in 2019, Bloomberg pointed out.

Metals and mining stocks were 2.6% lower in Toronto, although Barrick Gold (TSX: ABX) closed 2.3% higher as the gold price shone amid the uncertainty.

The gold price has risen about US$20 an ounce on the spot market over the past 24 hours and was worth just over $1,479/oz earlier.

China's iron ore futures rose yesterday, Reuters reported, as Vale cut its short-term iron ore outlook, while base metals bar tin closed lower in London.
 
Also in London, Glencore (LSE: GLEN) closed down 3.7% amid the gloom and as investors found CEO Ivan Glasenberg's departure could come sooner than expected, with the company putting the "transition to a new generation of leadership" among its top priorities for 2020.