The Fed’s rate cut was supposed to boost markets and slam the dollar… it didn’t quite work out that way.
One day after stocks tumbled when Powell disappointed markets with his hawkish cut – the biggest plunge for stocks on a rate cut day since the memorable 1987 – global markets swooned as a wave of selling swept across the world, as panicked traders dumped stocks on fears that trade war between the US and China is about to escalate. Add to this afresh trade war between Japan and South Korea, and a Trump announcement on EU trade at 1:45pm which will hang over markets, and it becomes obvious why world markets are a sea of red.
Meanwhile, safe havens such as bonds and the yen jumped in the wake of President Donald Trump’s move to escalate the trade war when he vowed to impose a 10% tariff…
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