The US employment report on the first Friday of December usually marks the unofficial end of the year. The desks are often lighter and dealers are loath to jeopardize the year’s bonuses in thin and often erratic markets. This year is an exception. Next week features the first ECB meeting with Lagarde at the helm …
Overview: Asia Pacific equities mostly declined in sympathy with yesterday’s large sell-off in the US and Europe. China and Taiwan were the notable exceptions, while Australia’s 2.2% decline, following the central bank meeting that resulted in what many are seeing as a hawkish hold, led the move lower. Europe’s Dow Jones Stoxx 600 fell 1.6% yesterday, …
US Brandishes Tariff Weapon and Weakens Animal Spirits Read More »
Consensus thinking sees two levers. One is the US tariff, and the other is the weakness of the Chinese yuan. They talk as if China may be depreciating the yuan, or tolerating a weaker yuan to offset the tariffs. This feeds the fear that China can escape from US pressure and supports those favoring an …
Call it policy by tweet. President Trump announced new tariffs on China on the social media platform. 1. For ten months, the US has levied a 25% tariff on $50 bln of Chinese high tech imports and 10% tariff on $200 bln of other goods. 2. Starting at the end of next week, the 10% …
Policy by Tweet: US Announces New Tariffs on China Read More »