Summary:
- Trump tweets on trade send global stock markets lower
- JPY shines as investors steer away from risky assets
- Market alert: Should investors be afraid of Trade Wars?
- USDTRY trades at the 6.00 handle
- Technical overview: DAX
Chinese equity markets have plummeted while the Japanese yen has jumped at the beginning of the new week following a tweet from US President Donald Trump suggesting more tariffs to come. He tweeted yesterday evening “the trade deal with China continues, but too slowly” and as a result the United States would undertake proper steps.
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Open real account TRY DEMO Download mobile app Download mobile appThe start to the new trading week across European equity markets has not been successful to say the least. Most of stock markets in Europe have started today’s trading well below the closing levels seen on Friday and the prime reason is a Trump’s tweet pointing to a further escalation of a US-China trade war.
President Trump has been selling tariffs as being positive for the US economy. This confidence might have been supported by a relative performance of the US economy so far but president Trump might miss the point here. Yes, the US economy is relatively less exports dependent but it’s not completely immune to global tendencies.
The Turkish lira is one of the weakest currencies on Monday as the USDTRY cruises past 6.00 barrier for the first time since October 2018! On top of heightened risk aversion caused by renewed trade concerns lira is under pressure from local political factors.
Kraft Heinz reported that it will have to restate its financial reports for 2016 and 2017 as they have contained some faulty information. The company said that it has found out an employee misconduct that resulted in misreporting.
