By Chris Becker
Risk markets continue to reel from the growing trade war as it seems the Trump administration is not going to back down from its scattergun approach and paring back over 30 years of international trade agreements over the course of a few weeks! The USD has recoiled somewhat from its recent gains, but all the major currencies are on edge, the Aussie dollar in particular, while gold looks set to go into freefall as other safe havens like Treasuries and Yen are strongly bid.
Recapping stocks in Asia yesterday first where Chinese markets Shanghai Composite reopened and had a doozy, crossing below 3000 points for the first time in over two years, losing nearly 4% to close just above 2900 points. This is obviously a serious rout in the wake of the $200 billion tariffs and puts the bourse on a fast track to terminal support at 2600 points, with only 2000 points the level below. Expect volatility ahead with government intervention likely:
