This comes in as the US President Donald Trump said to move ahead with a plan to impose new tariffs on China as early as next week. A tit-for-tat retaliation from the Chinese counterparts could follow through, bringing in more uncertainty about global growth.
Meanwhile, Argentina’s peso had its biggest drop in more than three years. The currency lost as much as one-fifth of its value. Their central bank held an emergency meeting and voted to increase the interest rate to 60 percent. This was in attempt to curb inflation at 31 percent and help stop the peso dropping even further. Investors are concerned over contagion.
On the economic data front, U.S. consumer spending recorded solid increase in July pointing to strong economic growth early in the third quarter. While Japan’s unemployment rate rose to 2.5 percent.