By Chris Becker
Trump has pushed risk markets into correction territory with his new round of Chinese tariffs, with US stocks slumping over 2% across the board in response. This new trade war has seen a rally in beleaguered Treasuries with yields recovering sharply, while European bond yields also dropped as the BOE kept rates steady. Other safe havens like Yen rallied overnight, putting the screws on Japanese stocks on the open this morning with a sea of red expected here in Asia.
Recapping stocks in Asia yesterday where the Shanghai Composite fell sharply at the open but has recovered somewhat after the lunch break to finish 0.5% lower at 3265 points. The market continues to reject overhead resistance at 3300 and today is likely to see a rout given the overnight trade war startup – I’m targeting support at 3200 here:
