Investors Buy Dollars, Brace for Stock Slide as Trade War Begins
- US dollar expected to maintain upward trend in tariffs-ramp up
- Markets risk ‘a painful adjustment process’ in coming weeks
Investors look likely to initially favor the US dollar, propelling it to new highs.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Having lived with the risk of a US-led trade war for weeks, financial markets reopened Monday needing to deal with the reality.
Investors favored the US dollar in early Asia trading and stocks and equity futures slid after President Donald Trump carried out his threat to impose general levies of 25% on Canada and Mexico and 10% on Chinese goods starting on Tuesday, sparking commitments to retaliate from other governments.