The risk-off mood continues this week as stocks from Tokyo to London extend last Friday’s losses. This sell-off takes follows escalating concerns over the U.S. – China trade war, after Beijing asked state buyers to stop imports of American agricultural products, casting more and more doubts over a resolution of the trade dispute. On top of that, the PBoC depreciated the Yuan to a record low against the U.S. Dollar as the nation use every card in its hand to protect itself from the negative effect of U.S. tariffs.
Photo by Neonbrand.
For now, the market is still waiting for President Trump’s reaction which may come later in the day in the shape of a traditional offensive tweet towards China.
Elsewhere, the earnings season continues to roll with financial giants like Unicredit, AIG and ABN Amro Bank publishing their results today. Traders may also stay cautious this week with multiples decisions on interest rates pending from 5 Eastern central banks including India, Australia and New-Zealand as well as several speeches from FED policy makers like Goverr Lael later today.
