Stocks decline on tensions, Argentinian election results pressure EM currencies

Summary

- Global stock markets sink at the beginning of a new week
- Safe havens currencies like CHF and JPY rally
- Argentinian peso sinks after Macri loses primary elections
- Gold stays above the $1500 mark

Beginning of the new week was marked with another sell-off on the stock exchanges. While Asian equities managed to pushed slightly higher during the first trading session of the week, moods were much more downbeat during the European and US trading hours. Spare for Swedish and Russian shares, all the major European indices moved lower on Monday. When it comes to the United States, S&P 500 index is trying to break back below the 2900 pts handle. Among reasons behind the sell-off one can name risk of further escalation in the Sino-US trade conflict as well as tensions in Hong Kong.

As stock markets are bleeding one should not be surprised by stellar performance of currencies like the Japanese yen or the Swiss franc. GBP is also trading higher against most of its peers in response to reports saying that some Members of Parliament want to chase another Brexit extension. Euro is trading higher against the US dollar in spite of revelations in Italy, where everything hints at snap elections being called this year. However, EM currencies are attracting the most attention today. Primary elections in Argentina were held this weekend and they resulted in a surprising defeat of the current president, Mauricio Macri. In turn, Argentinian peso plummeted dragging other EM currencies with it.

Situation on the commodities market is mixed today. Precious metals continue to move higher amid trade and geopolitical tensions. Oil is trading slightly higher while natural gas moves lower. Base metals are trading mixed with zinc and nickel pushing higher. Most of the agricultural commodities trade lower today.