‘A wobble in euphoric risk sentiment’: Nine investors on the currency war
By Sonia Rach, 6 Aug 19
UK and US stocks suffer after Trump brands China a ‘currency manipulator’
Phil Milburn, co-manager, Liontrust Strategic Bond fund
“President Trump loves to rattle his sabre, but tends to reach some kind of compromise at the eleventh hour. The fear now is that the trade wars will escalate further and make a compromise between the US and China much harder to reach. There have always been two parts to the trade wars, the headline grabbing imposition of tariffs and the slightly more subtle competitive devaluations of currencies.
“With the Chinese yuan versus US dollar exchange rate breaching the psychological seven barrier this week, China may get accused of being a currency manipulator. These factors have conspired to drive high quality sovereign bond yields even lower and caused a wobble in the recent euphoric risk sentiment.”
Tags: China | Currency | trade war | Usa