Markets rebounded strongly to open the trading week, following the panicked sell-off, the previous Friday. The trigger for the market panic was the reignition of the China-US trade wars. Trump responded to China’s restriction of sale of Rare Earth Metals (REM’s), by imposing a 100% tariff on all Chinese imports. Over the weekend it appears calmer heads prevailed, Trump relented and confirmed all was well. Equity market surged back, as did the crypto’s, but are still a long way from previous highs. The US Dollar settled, with the EUR pushing back above 1.1550, while the GBP recovered 1.3300.The softer reserve allowed commodity currencies to regain some lost ground, with the AUD retaking 0.6500, while the NZD held above 0.5700. Market conditions remain nervous, with Geo-Political sparks flying left, right and centre.
