GLOBAL MARKETS-Gold gains as trade concerns weigh on global markets

By David Randall
NEW YORK, Aug 9 (Reuters) - Signs of further escalation of
the trade war between the United States and China and weak
economic data from the United Kingdom weighed on global markets
Friday, capping a volatile week that has pushed gold up to its
highest level in six years.
A report that Washington was delaying a decision about
allowing some trade between U.S. companies and Huawei HWT.UL
again spooked Asia, while the prospect of snap elections in
Italy brought down shares across Europe. London's FTSE 100 index
.FTSE and the pound GBP= sank after Britain reported its
economy shrank in the second quarter, the first contraction in
seven years "It has been a very volatile week," said Elwin de Groot,
Rabobank's head of macro strategy.
"Until recently, the markets' view was that this trade war
will be resolved, but clearly now the thinking is that maybe
this is not the case and it could be accelerating from here," he
said.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.37% and was on pace for its second straight week of declines.
On Wall Street, the Dow Jones Industrial Average .DJI fell
95.08 points, or 0.36%, to 26,283.11, the S&P 500 .SPX lost
14.75 points, or 0.50%, to 2,923.34 and the Nasdaq Composite
.IXIC dropped 58.01 points, or 0.72%, to 7,981.14.
Benchmark 10-year notes US10YT=RR last rose 3/32 in price
to yield 1.7069%, down from 1.715% late on Thursday.
The yen JPY= , meanwhile, rose as much as 0.4% against the
dollar to 105.70 yen, virtually an eight-month high.
"The news about Huawei triggered the rise in the yen," said
Junichi Ishikawawa, senior foreign exchange strategist at IG
Securities. "This is a reminder that the U.S.-China trade
dispute remains a risk, and this risk is not receding."
Other safe havens also gained. Gold XAU= rose back above
$1,500 on Friday, its highest in more than six years, en route
to its best week since April 2016.
"The trade spat is driving the market crazy," said Jigar
Trivedi, commodities analyst at Mumbai-based Anand Rathi Shares
& Stock Brokers. "$1,500 (for gold) is now the new normal unless
trade relations take a turn in a right direction."
Bank of AmericaMerrilll Lynch noted that a mass $2.3 billion
pile into gold funds over the last week had been the fourth
largest inflow ever.
Expectations of production cuts by OPEC pushed Brent crude
LCOc1 back above $58 per barrel and U.S. West Texas
Intermediate (WTI) CLc1 made it past $53. Worries about the
global economy have pushed Brent down 6% for the week and WTI
more than 5%.

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Global assets in 2019 http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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