Market opens sharply lower to start the new week with the same theme: Trade War. It’s growing. Last week was the worst week on the year for stocks. US-China trade tensions show few signs of abating. China retaliated with a $60 Billion tariff on American goods. Rumors are circulating that they are looking for other ways to push back, including selling Treasuries, but that would hurt them too. President Trump said the US is where it wants to be with China, while Chinese Vice Premier Liu outlined conditions necessary to agree to deal. Larry Kudlow announced that China invited Lighthizer and Mnuchin to Beijing for talks, though no word on timing. It is unclear whether Trump and Xi can rescue the deal at G20 in Japan next month. Two weeks ago, a deal was at hand and was merely days away from signing. Now, a deal might not happen at all. That is why the Market is reacting so violently. Global markets were down overnight. It’s a broadbased sell-off. Crude prices are higher though, as tensions between the US and Iran seem to be building. Secretary of State Mike Pompeo is heading to Russia to meet with Putin. UBER had the worst Dollar debut for an American IPO ever, with a 7.6% decline. The S&P fell 50 points at the open. The DOW fell nearly 500. Gold is catching a bid again, showing that it is a bit of a safe haven in this volatile environment. Keep those belts buckled.
Have a great morning,