Trade War Concerns May Push Dow Towards Longest Losing Streak In A Decade
Dow Jones is currently trading more than 8 percent lower than its January high.
The Dow Jones Industrial Average Index declined for the eighth consecutive session on June 21, the fourth such losing streak in a decade, on escalating trade tensions.
Another factor that may have contributed to the index’s decline is the strengthening dollar index, Chris Wood, equity strategist at CLSA said in the Greed & Fear report.
The U.S. gauge has seen a maximum decline of over 12 percent from its January high and is currently trading more than 8 percent lower than the peak value. The dollar index rose nearly 3 percent so far this year.
If the Dow declines for a ninth session today, that will be the longest losing streak in a decade.
Trade war risks have not been fully priced in by the equity markets, Citi Research said in its research report.
According to Citi, the countries most exposed to trade tensions are:
- Vietnam
- Malaysia
- Singapore
- Korea
- Ireland
- Czech Republic
- Hungary
- Switzerland
- Germany
- Canada
- Mexico