US markets remain under intense pressure from sellers today after deteriorating sentiment because of Trump’s rhetoric and poorer US manufacturing data. Bonds are also cheaper.
The S & P500 is about to record its biggest failure in two months. Trump again threatens China to increase tariffs if Washington and Beijing fail to reach an agreement. Also, sentiment worsened after the US president confirmed he was returning tariffs on steel and aluminum from Argentina and Brazil.
In the meantime, the appetite has become even more appetite after poorer production figures in the US have emerged, indicating that the sector is still significantly lagging behind and remains negatively affected by the trade war.
The dollar index remains under pressure, the euro is up 0.5% today, the Japanese yen as a safe heaven currency is up 0.2%. 10-year US bonds are up to 1.84% yield. The German 10-year bund narrows the line to zero, approaching -0.27% yield today. Oil is up 1.7%, gold recovers losses from an earlier decline of 0.3%.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
Trader Martin Nikolov