Trade War

How a shift in trade policy, the extension of tax cuts, the appointment of Scott Bessent as Treasury Secretary, and potential threats to Federal Reserve independence could pave the way for a weaker greenback under Trump.

EUR/USD falls ahead of German inflation data, central bank speak. Gold looks to Fed Powell & Co at the ECB forum.

Whilst the promise of fiscal stimulus propelled Asian markets higher, news of Shanghai’s lockdown risks denting sentiment for the region.

Volatility for European and parts of Asia remain high for equity traders, yet US markets have shown minor signs of stability above key support levels.

There seems to be little reprieve for investors in China with the Hang Seng falling to a post-pandemic low and Alibaba trading below 100.

Alibaba is expected to report earnings for Q4 tomorrow, and it is likely to directly impact which way momentum turns from a key support level it currently hovers above.

Inflationary forces in China continued to defy global trends as both CPI and PPI data were down from last month.

The Hang Seng and Nikkei are like oil and water at the moment, with the former rising 10% from its lows and the latter falling 7% from its January high.

Several key markets have reached key support levels across Asia, so traders need to decide whether to buy at these lows or try and break them down further.

Asian equities were mostly lower yesterday as multiple drivers weighed on sentiment across the region. Futures markets are also pointing to a softer open today.

However, the Jackson Hole Symposium may be the catalyst bond traders are waiting for to determine their next move