Endgame? What endgame?
Now, reality can be whatever I want...
Equities are being hammered alongside other risk assets after Trump opted to escalate trade tensions, by tweeting that the US will increase tariffs against China over the weekend.
The move throws any potential trade deal between the two in jeopardy after supposedly "positive" and "constructive" negotiations recently. It basically goes to show that both sides are far away from reaching an agreeable compromise.
Knowing how China has responded in the past, this is a step back in trade negotiations as China will not head to the negotiating table while being threatened in such a manner. It's safe to say that this week's trade discussion will almost certainly be called off (no official statements made just yet) or at least won't hold much significance anymore.
S&P 500 futures are down by 2.0% (mind the gap, please) while a sea of red is submerging over Asian equities, with Chinese stocks bearing the brunt of the downfall today. The Shanghai Composite index is now down by 5.2% at the break.
Meanwhile, in the currencies space, the Japanese yen is the main beneficiary followed by the dollar and the franc. It's pretty much a risk-off environment with USD/JPY down by 52 pips to 1110.58 while risk currencies are punished with the aussie, kiwi, and loonie being the biggest losers in trading so far.
