Trade tensions between the U.S. and China continued to escalate last week, as China responded to the latest sanctions from the U.S with reciprocal tariffs on $60bn worth of U.S exports. However, there are reports that President’s Xi and Trump will meet at the upcoming G20 summit and that the U.S has also delayed implementation of proposed auto tariffs.
Renewed optimism towards the end of the week helped to shave losses. Chinese data also disappointed as industrial production and retail sales both missed expectations to the downside. U.S data, including retail sales and manufacturing output, was also mixed and the week’s events has stoked fears of a global economic slowdown. Treasury yields in general fell (price and yield hold an inverse relationship) on the concerns which also leads to growing expectations of a rate cut from the Federal Reserve.
Ian Slattery Investment Consultant email@example.com
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