The escalating trade war rhetoric and tit-for-tat actions between the US and China has cast doubts on there being any constructive outcome at the upcoming talks. Markets have fallen as risk averse sentiment grows. The Dollar is a touch firmer this morning and is at 1.0960 against the Euro and 1.2210 against the Pound. The Pound weakened sharply yesterday after news that Brexit talks between the UK and Europe were close to breaking down. EM currencies all fell yesterday, led by Turkey, as trade and geopolitical tensions unnerved traders. The Rand is at 15.2705 this morning, still within the recent 15.0000/15.4000 range. Jerome Powell, last night, said that the Fed would begin growing their balance sheet and providing liquidity to the funding market and he also left the door open for a further rate cut.
The risk off sentiment pushed Wall Street into the red with the S&P down 1.56%, the Dow down 1.19% and the Nasdaq down 1.67%. Asian stocks are following US markets and are currently down near to 0.70%. Locally, the All Share index closed 0.33% in the red.
US Treasury yields are a touch lower but still holding above key technical levels.
Oil is lower at $58.05 on global growth concerns while Gold is firmer at $1 506.10 as risk aversion pushes investors to safe haven assets.