US equity markets hit the skids Friday, as threats of a new trade war between the two world economic super-powers (China and the USA), exploded. China imposed severe restrictions on crucial ‘Rare Earth Minerals’ exports, which triggered a response from Trump, threatening to impose massive tariffs in response. The US and more especially, ‘tech’ globally, rely on China’s REM’s and limits will have huge manufacturing and trade implications. The EUR crashed below 1.1600, while the GBP tumbled below 1.3300.The soaring reserve hammered commodity currencies, with the AUD plunging below 0.6500, while the NZD heads back towards 0.5700. There are many disruptions in the world at the moment, with US Government closure, a collapsed French Government and now the threat of a reignited trade war. Uncertainty is death.
