Trade tension between the world’s two largest economies; US and China, are back in spotlight. In a new threat against trade partners, President Donald Trump has called for the EU and China to remove trade barriers and tariffs, or face the consequences.
This saw global stocks extend their sell-offs as investors steered away from riskier stocks lifting the safe-haven – US treasuries. Markets in China were especially hard hit. Losses across Asian equities were broad-based after Wall-street tumbled overnight with the S&P 500 and Nasdaq suffering their steepest losses in more than two months overnight.
On the macro-economic front, US new home sales surged in May. Their new home sales grew 6.7 percent, the highest level since November 2017.
Tomorrow, we are expecting New Zealand’s trade balance numbers for May, so lets see what impact it would have on the value of our Fijian dollar against the Kiwis.