Global stock investors are running for cover Wednesday, as emerging markets continue to bleed. Turkey deflects from a currency slump, by stepping up a trade fight with the United States. And China heads to the World Trade Organization, in a battle against US tariffs. I'm
] in New York. The market selloff is being exacerbated by investors seeking safety in the US Dollar, the world's reserve currency rising to a 13-month high.
Global investors are betting that American assets are the safest place to be right now, with the US economy stable. The Federal Reserve, likely to keep on raising interest rates and emerging economies looking wobbly. But that's strong dollar has a downside, it puts multinational companies like Caterpillar and Boeing on the defensive when it comes to sales in foreign markets by raising prices.
And that's on top of any price spikes, due to retaliatory tariffs on US goods. That worry is pushing shares of Caterpillar to a ten-month low. Shares of Boeing also slumping to lows not seen, since last October. But it's not just the dollar that's rattling nerves, Beijing officially lodged a complaint with the World Trade Organization, accusing US tariffs of harming China's rights, and undermining the global trade body.
Analysts say the complaint escalates the trade skirmish between Beijing and Washington to the next level. And it comes, as the Trump administration contemplates another round of tariffs. And as Turkey battles a currency crisis and tensions with the US, by doubling tariffs on American-made alcohol, cars and tobacco. Traders say whether it's Turkey, China, all worries about international sales.
All market fears point in one direction, growing concerns a global economic slowdown could be in the works.