Trade tensions escalate
Everything appears to be copping a shellacking as trade tensions between China and the US threaten to become a trade war.
Iron ore futures were trading limit down yesterday, losing another 6.9 per cent on the spot price to be 15 per cent lower in a week (it's now below $100/t on some indices).
The last time I checked the Dow had sold off to the tune of 800 points or so, the S&P 500 was down 3 per cent, and the NASDAQ was down 3½ per cent.
Markets are pricing in another rate cut in the US by next month, and the Aussie 10-year bond yield is now trading below the cash rate at below '1 per cent as interest rates continue to fall.
Oh, and England were rolled out for 146.
It's likely to be volatile ride for stock markets over the period ahead, especially with US stocks markets still trading at nosebleed levels, so it's useful to have some dry powder for when opportunities come around.
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