25 June 2018
Bassanese Bites: ASX Breakout! – Week beginning: 25 June 2018
It was a down week for global equities in general, thanks in large part to US President Trump’s threats to impose even more tariffs on Chinese and European imports. So far at least, however, what’s apparent is that countries are not bowing to Trump’s threats. That said, markets are still assuming (with some reason in my view) that some form of negotiated settlement will eventually be reached, or that at least escalation won’t continue much longer.
Indeed, as we’ve seen with his overturning of the forced separation of children from their asylum seeking parents at the Mexican border (a ploy which failed to get Democrats to agree on a bill to fund the Mexican Wall), Trump has the capacity to back down if he senses it’s a losing fight. And it strikes me that few in US industry are clamouring for Trump’s trade “assistance” given the economy is already booming, and many will be hurt by either higher import costs and/or lost export sales if he keeps up the fight.
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