Risk appetite has taken a hit as President Trump has discussed the prospect of raising tariffs further on China if there is no agreement reached on “phase one”. This could still be part of his carrot and stick approach to negotiation, but it is spooking markets which had been positioning towards the two countries coming towards a deal. Treasury yields are falling, whilst the yen is taking renewed strength and gold is also edging higher. Watching the Dollar/Yuan rate pulling back higher again decisively higher from 7.00 again shows the concern is growing. Equity markets are also starting to feel the pinch of some ... (full story)