Markets are shrugging off the apparent global trade war, largely ignoring imposition and increases in tariff levy’s, even inventing the term ‘TACO’ trade. Equity markets across Asia, Europe and the America’s rallied overnight, despite Trump imposing a 50% tariff on Brazil, for all goods commencing August 1st. The US Dollar gained some ground, with the EUR slipping below 1.1700, while the GBP trades 1.3570.The rally in reserve was not reflected in commodity currencies, with the AUD surging to 0.6580, while the NZD regained 0.6000. The 50% tariff on copper, was a shot in the arm for mining companies, and also a boost for commodity producing Countries. Trade will likely continue to dominate markets, despite the false bravado, of the term TACO.
