Asia Pacific Market Open – Brexit, Tariffs, Trade Wars, US Dollar, S&P 500, Australian Dollar
- US stocks brush off European declines, aided by reassuring trade news from the White House
- US Dollar[1] gains on Fed commentary, British Pound[2] undermined by the latest Brexit headlines
- Asia Pacific stocks may gain, boosting AUD[3] and NZD[4]. Anti-risk Japanese Yen[5] stands to lose
BACKGROUND: A Brief History of Trade Wars, 1900-Present[6]
While Asia Pacific benchmark stock indexes brushed off increased fears of a US China trade war[7] during the early hours of Tuesday, European ones could not. After the Nikkei 225[8] closed 0.64% higher, the Euro Stoxx 50 and DAX[9][10] plummeted 0.20% and 0.40% respectfully. Political uncertainty and tariff concerns seemed to have undermined the region.
For one thing, the Euro edged cautiously lower amidst a report from the German business magazine WirtschaftsWoche. It warned that US President Donald Trump could place duties on imported cars perhaps next week. Meanwhile, the British Pound was the worst performing FX major given the latest Brexit headlines out of the UK[11] that casts uncertainty over Prime Minister Theresa May and her leave proposal.
The US Dollar got a boost later in the day thanks to commentary from Fed Vice Chairman Richard Clarida who helped it outperform against the Singapore Dollar and other ASEAN currencies as anticipated[12]. Mr. Clarida backed gradual hikes after previously citing concerns about global uncertainties which
