- Aggressive price action was seen on Friday 23rd August with China and principally the USA amplifying trade war pressures.
- China retaliated Friday with tariffs on $75 billion of US goods and President Trump reacted by “ordering” US companies to NOT do business with China.
- Then, just after US markets closed Friday, President Trump announced another 5% of tariffs on $250 billion of Chinese goods already being impacted, plus 5% more on the new tariffs due 1st September and 15th December.
- This sent US and global stock averages significantly lower Friday, erasing gains seen throughout the week. It also produced a selloff in the US Dollar.
- Safe havens, however, like US Government Bonds, the Japanese Yen and Gold all rallied.
- The escalations in the trade war eclipsed the Fed Meeting Minutes from July, the Jackson Hole Economic Symposium and even the weekend’s G7 Meeting.
- Trade war tensions remain in the spotlight into this week alongside the key data as below.
Key this week
|Date||Key Macroeconomic Events|
|26/08/19||UK Holiday markets closed; German IFO; US Capital Goods Orders|
|27/08/19||German GDP; US Consumer Confidence|
|28/08/19||German 10yr Bond Auction|
|29/08/19||German CPI & Unemployment; US GDP and PCE (QoQ)|
|30/08/19||US PCE (MoM and YoY)|