The handover given to Asia from the major equity indices turned from mixed to sour, as President Trump voiced his latest trade war move against China. Trump announced announced another $200 billion worth of Chinese goods would be slapped with additional tariffs.
The mood remained predominantly negative in Asia although the Australian ASX stood out as it gained some points in positive territory.
A look at the currency moves heatmap https://www.realtimeforex.com/fundamental-analysis/market-movements/ shows that both the CHF and the JPY were in support this morning, flaunting their safe haven appeal when broader sentiment took a dip lower.
The US Dollar index pursues the lower side so far this morning again, after hitting fresh highs last Friday today it enters its third day in declines.
This discord between the world’s 2 largest economies has raised concerns that have dampened investor sentiment as we can see. The move into the safe haven assets is what we usually expect at these moments.
In today’s economic docket we have ECB President Draghi set to deliver a speech in Portugal, along with data for current account and Construction output from the EZ. Later in the afternoon we have Housing starts and Building permits from the US. Late tonight the BoJ will also release the minutes of the last Policy meeting.
