Jun 18, 2018 8:30 AM | Daily Market News
LGT Navigator: Trade war tensions cloud investors' sentiment once again
The US government has announced punitive tariffs of 25% on more than 1,100 Chinese products worth USD 50bn, dampening investor sentiment. At the same time, China and the EU imposed retaliatory duties on US goods. A worsening of the trading conflict will cause further unrest in the new trading week. Following the rate decisions of the Fed, ECB and BoJ, this week's focus will be on the monetary policy announcements of the Bank of England and the Swiss National Bank (SNB) on Thursday.
The ECB's cautious bias toward an interest rate turnaround, despite the announcement to end its billion-dollar bond purchase program probably at the end of this year, weakened the euro significantly. The ECB maintained its key interest rate at a record low and remained extremely cautious in its communication. At the same time, the Bank of Japan also left its key interest rates unchanged and even lowered its inflation expectations.