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Markets unnerved by trade war escalation Markets unnerved by trade war escalation Markets unnerved by trade war escalation

Markets unnerved by trade war escalation

Commodities
Strats-Ole-88x88
Ole Hansen

Head of Commodity Strategy

Financial markets are growing increasingly nervous ahead of Thursday, when President Trump is expected to slap another round of punitive tariffs on Chinese imports. The dollar is seeing some broad-based gains while stocks are trading lower.

The reaction in commodities has been broadly negative with crude oil and products being the noticeable exception as momentum buyers respond to Iran supply risks and Tropical Storm Gordon currently moving through the Gulf of Mexico. 

Bloomberg commodities index
Source: Bloomberg, Saxo Bank
Precious and industrial metals have been hit by this renewed focus on the trade war, which carries a risk to future growth and demand.

Copper is currently trading down on the day by 2.5% and silver has hit a 2-1/2 year low against the dollar and a near 10-year low against gold on its link to industrial metals.
Commodities
Source: Saxo Bank

Outrageous Predictions 2023: The War Economy

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    Billionaire coalition creates trillion-dollar Manhattan Project for energy

    The constantly growing global need for energy drives the world's richest to huddle up and launch a R&D project in a size the world hasn't seen since the Manhattan Project gave the US the first atomic bomb.
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    French President Macron resigns

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    EU Army forces EU down path to full union

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    A country agrees to ban all meat production by 2030

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    OPEC+ & Chindia walk out of the IMF, agree to trade with new reserve asset

    Sanctions against Russia have caused widespread turmoil due to US Dollar moves in countries across the globe that don't consider the US an ally. To relieve themselves from this, they leave the IMF and create a new reserve asset.
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    USDJPY fixed to the USD at 200 as Japan overhauls financial system

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