European stocks fell alongside Asia shares overnight and US futures are currently pointing to a lower open. This sell-off took place after the surprising announcement from President Trump that the U.S. will proceed with an additional 10% tariff hike over the remaining $300 billion of Chinese goods coming to the U.S.. When explaining the reasons behind such a hike, Donald Trump said he thinks President Xi Jinping wants to reach a deal, but things are not moving fast enough.
Photo by Renan Kamikoga.
An immediate price reaction has been noticed on global stock indices as investor sentiment has been smashed following this week’s disappointing FED and fears of a new cycle of escalating tensions between Washington and Beijing. Markets are becoming significantly volatile ahead of the last big event of the week: the non-farm payroll report due in a few hours. Today’s job report is expected to be lower than the previous one (previous 224K vs expectations 160K) which could paradoxically play the game of stock traders as it would induce the FED to move closer to another cycle of rates cut.
