This, in turn, negatively affected the peso and pushed the citizens of Argentina to invest in cryptocurrency.
Incessant concerns that a trade accord would not be finalized before the 2020 USA presidential election heightened after Goldman Sachs came out as the newest investment firm to slash its United States growth forecast and cautioned a trade stalemate would arise after the polls.
Stocks on Wall Street fell more than 1 per cent to push a gauge of global equity performance down nearly as much.
The yuan has become a focal point since last week when Beijing allowed the currency to fall below 7 per dollar, prompting Washington to officially label Beijing as a currency manipulator, and further escalated the ongoing trade war between the two sides.
Stocks for the near-term, on the other hand, lack a stimulus either from company profits, a central bank, or a trade agreement, Rahul Shah, chief executive of New York-based Asset Management Co., disclosed. "And likely next year. the probability of default will jump to 50% at least". "That does set up the market possibly for a correction at this point", he said. Half of Shah's portfolio is corporate debt with the remainder tech stocks and shares with solid dividends, he said.
The pair gained 0.2% even after a survey showed the Australia's National Australia Bank's index of business conditions was down 2 points to +2 in July. The yellow metal edged up, retaining above the psychological region of $1,500. Spot gold added 1.1 per cent to US$1,512.51 an ounce. A move beyond 104.100 per dollar, this year's high scaled at the start of January, would take the yen to its highest level since November 2016.
U.S. long-term yields have fallen in six of the past nine sessions, reflecting investors' diminished risk appetite.
Early gains for Europe's main bourses had quickly disappeared and Wall Street futures were already in the red after Asia-Pacific had also finished lower overnight.
Benchmark 10-year US Treasury notes rose 28/32 in price to push their yield lower at 1.6386 per cent.
A poor showing for Argentina's President Mauricio Macri and a surge for his leftist opponent sparked fears of a possible default on the country's International Monetary Fund loans, sending the peso to its lowest level in almost two decades and causing a massive sell-off in the country's stock market.
The political turmoil, the burden of unpopular economic measures, and the uncertainty of a possible future populist government caused the dramatic slump in the markets with the Argentine stock market falling 35% and the currency dropping 25% of its value against the USA dollar after a surprise primary election result.
Investors are fearing the worst. -China trade war will impact American economic growth pushed the dollar lower on Monday.
Worldwide benchmark Brent crude futures were at $58.16 a barrel by 0829 GMT, down 37 cents from their previous settlement.