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.
Yes, the Lira is up (still below Friday's close) and The Dow is up (thanks Home Depot), but if everything is awesome, why are copper futures and EURCHF tumbling?
The "manic Monday" turmoil that rocked global markets at the start of the week, eased during Asian hours on Tuesday and followed through in the European session sending global markets higher.
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.
