Stocks slip on US-China trade tariffs, Argentina hit by capital controls

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Stocks slip on US-China trade tariffs, Argentina hit by capital controls
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NEW YORK (REUTERS) - US stock futures dove on Monday (Sept 2) after Washington and Beijing placed new taxes on each other's goods, while Argentina imposed capital controls and cast a new spotlight on emerging-market risks.. Read more at straitstimes.com.

NEW YORK - US stock futures dove on Monday after Washington and Beijing placed new taxes on each other's goods, while Argentina imposed capital controls and cast a new spotlight on emerging-market risks.

"The ultimate outlook for the trade dispute has become harder to predict with confidence," said Mark Haefele, chief investment officer at UBS Global Wealth Management. The about-face by Macri, who had previously lifted many protectionist practices of his predecessor, Cristina Fernandez de Kirchner, came after the government failed to stem heavy investment outflows and to shore up its tumbling currency.

Income-generating, so-called"carry," positions, such as select emerging market currencies, will perform well as central banks ease policy in response to weaker growth, said UBS' Haefele. The 5-Star Movement and the Democratic Party held talks over the weekend on cabinet posts and a common agenda. In Hong Kong, police and protesters clashed in some of the most intense violence since unrest erupted more than three months ago. China, eager to quell the unrest before the 70th anniversary of the founding of the People's Republic of China on Oct. 1, has accused foreign powers of fomenting the unrest.New tariffs could chill global growth further, and commodity prices on Monday pointed to little optimism. Safe-haven gold gained, adding 0.6% to spot prices, while oil and copper lost value.

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