US equity markets stabilised overnight, following the steep sell-off in the previous session, triggered by fears of a new trade war between the US and Europe. Trump had escalated tariffs on European nations, that had responded negatively to the US take-over of Greenland, but the EU responded by suspending the EU/US trade deal. Europe is eager to show they are not a toothless tiger, willing to rollover, but they remain vassal states. The US Dollar stabilised, with the EUR drifting back to 1.1700, while the GBP drifted to 1.3420.Commodity currencies are beneficiaries of the uncertainty in markets, with the NZD surging to 0.5850, while the AUD regained 0.6750. Upheaval remains in Europe, while Japan is suffering a crises in their bond markets, triggered by the calling of the snap election. Uncertainty creates turmoil.
