Tech stocks and growth exposed sectors slumped in overnight trading in an escalation of the trade conflict to US-imposed investment restrictions. Both Treasury and White House officials tried to hose down fears, with limited success. Bonds rallied, the US dollar trod water, and oil and industrial metals fell. Asia Pacific investors are bracing for a down day.

Investors may take heart that there is a possible market solution to trade difficulties. Harley Davidson announced overnight it will move production of the 40,000 bikes it sells a year in Europe out of the United States. Potential job losses in an iconic business situated in a political heartland may do more to end the rhetoric than any trade envoy.

Given yesterday’s regional sell down the impact of negative sentiment may lift over the trading day. US futures in their overnight session have moved into modestly positive territory. However any rallies are likely short lived while the risks of trade wars hang over markets.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.