With the US administration announcing a new round of tariffs to be placed on Chinese imports this morning , we have seen investors in Asia , Europe and now the US rush to close out of growth assets and move into defensive positions. The US has listed US$200 bn worth of products that will be subject to a 10% tariff from September after a public discussion.
Stock indices were down across the globe as investors moved back into fixed interest products or even cash which can now generate some returns. In the US the Dow index is at 24759 down 155 , the S&P500 is at 2779 down 13 , and the Nasdaq is at 7253 down 27. In the FX market the EUR is trading at 1.1725 down 18 , the GBP is at 1.3252 down 18 , and the JPY is last at 111.24 up 23. The US Dollar index is flat at 93.90. The WTI Crude oil futures are at 73.23 down 87 after OPEC has picked up its production.
Pres Trump is at a NATO summit in Brussels and began by insulting the Germans by calling them "captives of Russia" for buying 70% of the oil and gas they need from Gazprom , the Russian energy company.
US PPI numbers were out earlier at 0.3% headline and 0.3% for the core (ex food and energy) . This was a bit stronger than expected and does not seem to show any change since the trade war began. US CPI due out on Thursday.