One day after the the S&P500 bull market set a new duration record, at exactly 0.01 Washington Time on Thursday, the U.S. imposed tariffs of 25% on $16 billion worth of imports from China, sending the US dollar sharply higher across the board.
It's relatively quiet week where the highlights will be the latest global PMIs, the Aug 23 US-China tariff deadline, the minutes from the last FOMC and ECB meetings and, of course, Jackson Hole looms at the end of the week.
While traders will focus on Wednesday's retail sales number, the main focus will be the ongoing collapse in Turkey's currency and whether there will be contagion to other EMs as well as any escalations in the US-China trade war.
In a move that is certain to prompt immediate response by Trump, China released the proposed retaliation list to US tariffs, announcing it will impose differentiated tariffs on $60 billion in US goods.
"The latest in the left’s shrill attempt to undermine Trump is showing pictures of Obama-era detention centers with kids in chain-linked areas... But it’s not working. If the left is going to get their Jaws around Trump, they are going to need a bigger porn starlet."
Another day, another leg lower in cryptocurrencies as FUD spreads, this time on the back of headlines exposing market manipulation during last year's meltup and collapsing margins for miners as prices tumble below breakevens.