What’s going on in the world…
Market opens lower after the worst day for the DOW and S&P since January. All major indices fell 1.5%+ as expectations of a trade deal keep seemingly slipping away. A game of chicken is at hand. Both China and the United States are calling each other’s bluff. A new deadline is in place for tariff increases. That is midnight eastern time, Friday morning. Until then, expect the Market to get kicked around like a kite in a thunderstorm. That’s what happened yesterday. It’s likely again today. Earnings are over 80% complete, but clearly it’s trade and geopolitical headlines that are dictating trade this week. Iran is digging in further against US pressure, saying it will stop complying with the nuclear deal. Trump pulled out of it a year ago, but Europe has been trying to keep it alive and in force. It’s still not clear who will take over the reins of the ECB when Mario Draghi leaves in October, which will have profound implications for Europe and beyond. Robo taxis are coming quicker than we might think as Lyft and Google’s Waymo plan to roll them out in Phoenix soon. Interest rates are slipping further as is the Dollar. Gold is flattish after a strong day yesterday. Keep those belts buckled.
Have a great morning,
Mike Frazier
