Market Update – August 2019

Global markets took a shot to the gut

As the month kicked off with an escalation in the US-China trade war. While markets were anticipating another stalled resolution to the trade negotiations none expected the US president to impose a 10% tariff on further $300 billion worth of Chinese goods.

To this China hit back hard in two ways. Firstly China allowed its currency relative to the US dollar to fall to the lowest level in a decade which mitigated the intended impact of the previously imposed US tariffs as it made exports to the US more affordable.

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