Markets shudder as trade tensions reach an ear-piercing crescendo   


06 August 2019 : Investors are struggling to shake off the pounding hangover from yesterday’s dramatic global selloff as US-China trade tensions took a dangerous turn for the worse.


Any hopes of a resolution to longstanding trade disputes between both sides were thoroughly quashed after the Chinese Yuan slipped past the psychological 7.0 mark for the first time since 2008. With the US Treasury Department wasting no time in labelling China a currency manipulator for the first time since 1994, this could open doors to more US sanctions against China. Heightened fears over trade disputes between the two largest economies in the world reaching a point of no return have crippled risk appetite, ultimately exposing global equities to downside shocks.


Asian shares were painted bright red this morning following Wall Street’s gut-wrenching declines overnight. The negativity from Asian markets is likely to contaminate European stocks this morning. US stocks experienced their single worst day of 2019 in the previous session, and could extend losses this afternoon as US-China trade tensions drain investor confidence.


Source: Lukman Otunuga, Senior Research Analyst at FXTM.


Reporting for EasyKobo on Tuesday , 06 August 2019 in Lagos, Nigeria


Copyright @ 2010-2019 Easykobo.com by Naija infotech & solar energy ltd. All rights reserved