Japanese Yen and Greenback Both Enjoying The Trade War
Japanese Yen and the U.S. Dollar have broadly reinforced after the US decided to push on 10% tariffs on another 200 billion of Chinese goods. The tariffs will be effective in September and the list includes clothing, television components and refrigerators as well as other technology products. Asian stocks weakened. China Shanghai SSE fell -1.87%. Hong Kong HSI reduced -1.44%. Japanese Nikkei dropped -0.93%. Singapore Strait Times lowered -0.84%. Aussie is trading as the firmest. Kiwi and Loonie remained soft as well. Bank of Canada is going to execute a rate hike by 25 basis points to 1.50%.
US action against China got strongly condemned among the whole world. A spokesperson of the US Chamber of Commerce stated: “tariffs are taxes, plain and simple. Imposing taxes on another $200 billion worth of products will raise the costs of every day goods for American families, farmers, ranchers, workers, and job creators. It will also result in retaliatory tariffs, further hurting American workers.” The Chinese Ministry of Commerce was “shocked” with a “totally unacceptable” action. China promised to respond with “necessary counter measures” and call on the international community to defend against “trade hegemonism”. It will also file a complaint to the World Trade Organization.
Today, NATO members are having a 2-day summit in Brussels. The key point is US relationship with the European Union. Donald Trump and EU officials aren’t expected to express much cordiality towards each other.
Australia Westpac consumer confidence increased 3.9% in July. Home loans were up 1.1% mom in May. Japanese domestic CGPI lifted 2.8% yoy in June. Machine orders fell -3.7% mom in May. Tertiary industry index surged 0.1% mom. Today, the US will publish PPI.