Global Shares React Negatively to US New Tariffs
The global stock markets reacted with sharp losses to the US additional tariffs on the Chinese goods worth $200b. Major European shares lost more that 1% each. US announced plans to introduce an additional 10% duty on Chinese goods worth $200 billion following the introduction last week of duties on Chinese machinery and equipment, parts and electronics worth $34 billion. It is also planned to introduce duties on electronic and other components worth $16 billion. After reports of the introduction of new fees by US, Beijing stated that new measures by Washington are completely unacceptable.
Today, the results of the meeting of the Bank of Canada will be known. The latest economic data, as well as the statements of Governor of the Bank of Canada Stephen Poloz, make experts predict that the central bank today will raise the key interest rate from the current level of 1.25% to 1.50%.
The British pound continues to be held hostage to political drama in the UK, where opponents continue to undermine Theresa May’s rule. Next, the focus of the players will be the speech of the head of the Bank of England Carney.