A whole number of things just went sideways for global risk sentiment.
Timing is everything when it comes to President Trump, and while his tariff comments are probably a case of holding cards close to his chest while keeping the pressure on China, when taken in context with all the other noise, markets have quickly gone from good to bad.
His latest comments on the immigration front with Mexico are bringing into question the USMCA again ” “We won’t be trading with Mexico if the relationship isn’t good […] we want to see Mexico move migrants back to Central America.”
In general, risk sentiment is getting hit with a ton of bricks driven by Trump’s hard-line immigration stance threating the USMCA and then backed up this morning bellicose tariff comments directed at China.
It doesn’t sound like we will see Donald, the Deal Maker but instead Trump the Trade Warrior at G20
And then on the never-ending Brexit saga and perhaps a foreshadowing of what to expect when May faces parliament. BREXITEERS ‘WILL BACK MAY’S DEAL IF SHE SAYS WHEN SHE’S QUITTING’- THE TIMES
And to add a bit of spice to the local narrative, The Australian Government has just lost its control of parliament after a surprise departure. Julia Banks, an MP from the Liberal Party, has made a shock announcement that she is leaving the party and joining the ranks of independent MPs. This politically damaging body blow has sent the Aussie hurtling towards them.720O
It’s a flat-out toxic cocktail that has seen equities and commodities come under pressure
Oil is suffering from the ” risk off ” financial flow amidst uncertainty over just how aggressively Saudi Arabia will be inclined to offer up d a production cut with enough sting to buttress prices without provoking the ire of President Trump. President Trump is not in a good mood today. !!
So how was your morning ??
