Greenback Dropped, Donald Trump Unfolding Trade War With China

Market Reviews

The sentiment at stock market has weakened on a risk that Donald Trump’s actions were causing a trade war with China. The President is preparing a new trade and investments package targeted at China. The tariffs on Chinese output could estimate up to 60 billion dollars.

DOW dropped -171.58 points (-0.68%) to 25007.03. S&P 500 fell -17.71 points (-0.64%) at 2765.31. NASDAQ declined -77.31 points (-1.02%) to 7511.01. Nikkei reduced -0.7%, HK HSI tumbled -1.3% and China SSE fell -0.5%. Greenback has broadly softened as well, trading as the weakest with Loonie. Pound and Swiss Franc, on the other hand, are now the firmest.

Haruhiko Kuroda (BoJ Governor) once again talked about reaching the inflation objective of 2% and maintaining the current stimulus policy. At the same time, the Governor said BoJ is capable to exit the program without causing any risks to the economy. Stephen Poloz (BoC Governor) in his yesterday’s speech noted that Canadian job market looks very promising and it’s expected to increase. The Governor added that the most important thing to Bank of Canada now is NAFTA renegotiation.

New Zealand current account deficit dropped to -2.77 billion of New Zealand dollars in the fourth quarter. Australian Westpac consumer confidence lifted 0.2% this month. Japanese machine orders grew 8.2% mom in January. Chinese retail sales were up 9.7% yoy, industrial production surged 7.2% and fixed assets investment rose 7.9% yoy in prior month. Today, Germany will release Consumer Price Index, Eurozone will present industrial production and employment, US will feature retail sales, Purchasing Price Index and business inventories.