Stocks rebounded on Tuesday after the Trump administration delayed tariffs on some consumer goods until December. The reprieve came amid rising political uncertainty in Argentina and Italy, ongoing protests in Hong Kong, and a growth warning from Singapore. The US government delayed tariffs on items such as cellphones and laptops.
However, there was plenty of bad news for investors too:
Protests in Hong Kong over a proposed extradition bill, which would allow suspected criminals to be sent to mainland China for trial, forced the territory’s airport to close on Monday. Investors are concerned about the economic fallout of the disruption and impact on industries such as banking and luxury. They’re also wary of possible Chinese intervention.
Argentina’s peso, Mervel stock market, and government bonds all plummeted after President Mauricio Macri was routed in primary elections. The upset fanned fears that a more protectionist government could take power following presidential elections in October.
Similarly, Italy’s ruling coalition has splintered with nationalist leader Matteo Salvini calling for a confidence vote and elections. The Senate is set to determine the next step later today.
Singapore previously expected its economy to grow between 1.5% and 2.5% this year. It has slashed that forecast to between 0% and 1% growth, citing a weaker global growth outlook due to the US-China trade war and a downturn in the global electronics industry.