Trump signs order raising Canada tariffs to 35% from 25%
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* U.S. 10-yr yields decline to lowest levels since Oct 2016
* Gold hit at 6-year high
* China's offshore yuan slides past 7-per-dollar mark
* Futures down: Dow 0.95%, S&P 0.94%, Nasdaq 0.96%
(Updates prices, adds comments)
By Medha Singh
Aug 7 (Reuters) - Wall Street was set to open lower on
Wednesday, as investors sought safety in gold and government
bonds on worries about the impact of a long-drawn trade war on
global economies.
A U.S. bond market indicator on recession was at its most
elevated levels since March 2007 as Treasury yields took another
dramatic drop. US/
China's offshore yuan CNH= fell through the key level of
7-per-dollar mark after having recovered partly on Tuesday that
had helped drive a 1% gain in the three main Wall Street
indexes. CNY/
"There are two factors that are causing this reversal in
market - rates are falling and gold is moving higher," said
Peter Cardillo, chief market economist at Spartan Capital
Securities in New York.
"Investors are very much concerned about the trade war and
its expansion and that's certainly being manifested in the price
to gold."
Gold XAU= prices scaled a six-year peak.
Major U.S. lenders, which tend to suffer in a lower
interest-rate environment, fell in premarket trading. Bank of
America Corp BAC.N , Goldman Sachs Group Inc GS.N , JP Morgan
JPM.N and Morgan Stanley MS.N fell between 1.6% and 2.1%.
At 8:51 a.m. ET, Dow e-minis 1YMcv1 were down 247 points,
or 0.95%. S&P 500 e-minis EScv1 were down 27 points, or 0.94%
and Nasdaq 100 e-minis NQcv1 were down 72.25 points, or 0.96%.
With the second-quarter earnings season winding down, about
73% of the 426 S&P 500 companies that have reported results so
far have topped earnings estimates.
Walt Disney Co DIS.N dropped 4.7% after its quarterly
earnings missed analysts' forecast as the company invested
heavily in its streaming platform and began folding in assets
purchased from Twenty-First Century Fox. CVS Health Corp CVS.N rose 4.1% after the drugstore chain
posted profit above estimates, boosted by strong sales in the
Aetna health insurance business it acquired last year and raised
its full-year earnings forecast. Cambrex Corp CBM.N soared 47.3% after the contract
development and manufacturing company said it was being bought
by an affiliate of private equity firm Permira Funds for about
$2.02 billion.