Investors took to the markets today with a renewed appetite for safety assets such as the Japanese yen, German and American government bonds, and gold.
After a few days of reassurances that the negotiations between China and the United States are going well, the markets reacted negatively to President Trump’s comments that he was not happy with the current arrangements between the two countries. This negated earlier statements by the Treasury Secretary Steven Mnuchin, who said that the two largest economies in the world were on their way to avoid a trade war.
Trump’s statement increased the risks of a trade war. He also went back on a previous decision to help the Chinese ZTE Corp. and spoke against the company once again. Moreover, there is still doubt regarding the upcoming summit between Trump and Kim Jong-un on June 12.
