020 7898 0500The European markets fell today following Trump’s decision to impose a fresh wave of tariffs on Chinese imports. With Tuesday’s ZEW economic sentiment indices for Germany and the eurozone falling to their lowest levels for years, this news is far from welcome.
Investor confidence has been significantly affected by fears over a trade war with America and Trump’s actions are not those of a man who is prepared to back down. Having said that, the eurozone will not take any action lying down – but therein lies the fears of a trade war.
The euro lost a little ground to the dollar but it wasn’t as bad as it might have been, but then there were no major economic data releases from the UK, US or eurozone. It was the stock markets that saw the most action yesterday and that could continue throughout the rest of the week as the tensions between the US and China rumble on.
Today we’ll see the German inflation rate for June, as well as the eurozone’s industrial production figures for May.
