Stocks plunge on Friday

Friday seemed to be a negative day for equities as investors braced for President Donald Trump’s response to China’s national security legislation for Hong Kong, threatening to take the shine off a monster week - and month - for Wall Street, which pushed the S&P above 3,000 and the 200 DMA for the first time since March.

The Dow Jones index was down 1%, the SP500 was half a percent weaker and the Nasdaq 100 index managed to erase daily losses to trade flat ahead of the US opening bell.

U.S. stock indexes sold off late on Thursday after traders discovered that Trump was going to make a statement on Friday about China, one which had been scheduled since Monday. Trump has vowed a tough US response to China’s move, which many fear could erode some of the U.S. economic privileges that Hong Kong enjoys.

In the FX land, the greenback continued to decline sharply and the EURUSD pair rose to previous swing highs of 1.1150. Other USD pairs showed similar movements and the US dollar was trading broadly lower on Friday.

Oil also slipped as sentiment worsened and it seems like the WTI benchmark has found its short-term top near the 35 USD level. If the situation continues to deteriorate, oil could plunge back below the 30 USD threshold. 
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