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BUSINESS Thursday 5 sepTember 2019
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Stocks move higher as investors pivot from broad sell-off

By ALEX VEIGA gains. Activision Blizzard moved broadly higher. The
Associated Press climbed 4.6%, Honeywell Hang Seng in Hong Kong
Technology companies gained 2.2% and Citigroup surged 3.9% after the gov-
led a broad rally in U.S. added 1.2%. ernment withdrew an ex-
stocks Wednesday after- Traders moved away from tradition bill that had set off
noon, placing the market safe-play holdings, such three months of protests in
on track to recoup its losses as utilities and real estate, the region.
from a day earlier. which lagged the market. Stocks in Europe moved
Traders pivoted to riskier Investors have been wor- broadly higher following
holdings as encouraging ried that the trade war and the latest developments
developments overseas a slowing global economy in Britain’s plans to exit the
helped alleviate investors’ could tip the U.S. into a re- European Union. Britain’s
anxiety over the global cession. The bond market parliament will attempt to
economy. Lawmakers in has reflected these fears, defy Prime Minister Boris
Britain were seeking a less with long-term bond yields Johnson and his plans to
chaotic exit from the Eu- falling below short-term pull out of the EU on Oct. 31 In this Aug. 21, 2019, file photo trader John Panin, center, works
ropean Union and politi- ones in August, a so-called with or without a withdraw- on the floor of the New York Stock Exchange.
cal tensions in Hong Kong inversion in the U.S. yield al agreement. Leaving the Associated Press
eased. curve that has frequently EU without a deal that cov- nations in the EU. vestors should keep in mind
The rally reversed Tuesday’s predicted previous reces- ers trade and other issues ANALYST’S TAKE: While geo- Tuesday’s weak manufac-
losses, when disappointing sions. While bond yields could result in economic political developments in turing activity report as yet
economic data and an turned lower on Wednes- chaos for Britain and com- Britain and Hong Kong are another harbinger of an
escalation in the ongoing day, long-term bond yields plicate trade with member giving the markets a lift, in- economic slowdown.q
trade war between the U.S. were once again higher
and China led to a sell-off than short-term ones. The
that ended a three-day yield on the 10-year Trea-
winning streak for the mar- sury note fell to 1.45% from
ket. 1.46% late Tuesday. The
Chipmakers, which have yield on the 2-year Trea-
been at the mercy of sury note slid to 1.43% from
trade war volatility, did 1.46%.
much of the heavy lifting KEEPING SCORE: The S&P
for the technology sector 500 was up 0.8% as of 1:58
Wednesday. Intel rose 3.6% p.m. Eastern Time. The Dow
and Nvidia rose 2.7%. Ap- Jones Industrial Average
ple, which relies on China rose 182 points, or 0.7%,
as a key part of its supply to 26,299. The Nasdaq,
chain, rose 1.6%. which is heavily weighted
Communication services, with technology stocks,
industrial and financial climbed 1.1%.
stocks also notched solid OVERSEAS: Asian stocks

US trade gap fell 2.7% in July

including the gap with China

By JOSH BOAK iff war with China. Trump
Associated Press has been taxing Chinese
WASHINGTON (AP) — The imports in hopes of reduc-
U.S. trade deficit declined ing the trade gap and re-
in July, including the gap ceiving better terms for
with China that has been trade, yet his moves have
the focus of President Don- generated uncertainties
ald Trump’s tariffs. that have hurt growth and
The Commerce Depart- pushed manufacturing into
ment said Wednesday a slowdown. By Dec. 15,
that the gap between the the United States is sched-
goods and services the uled to tax almost every
U.S. buys and what it sells Chinese import. Trump im-
abroad fell 2.7% to $54 bil- posed a 15% tax this month
lion in July from June. Ex- on $112 billion of Chinese
ports rose 0.6% to $207.4 imports, in addition to al-
billion, while imports ticked ready imposing a 25% tariff
down 0.1% to $261.4 billion. on $250 billion worth of Chi-
Compared to a year ago, nese goods. The taxes are
the average trade gap has hitting U.S. consumers and
increased $7 billion. businesses as 87% of textiles
Trade has become a sen- and clothing the United
sitive topic for the global States buys from China and
economy as the United 52% of shoes now face a
States has escalated a tar- surcharge.q