By The Boy Who Procrastinates – September 28, 2019
Even though Xi and Trump have agreed to a trade truce at the G20 Summit in late June, the tit-for-tat trade war appears to resume with greater intensity. At one point, the PBOC has let the Chinese yuan fall about 4% to cushion the blow of US escalating trade tariffs. In response, China was labelled a currency manipulator by US Treasury.
At this stage, there does not seem to be a respite insight for this ongoing trade war as both sides have threatened with new tariffs and hikes to the existing duties in the months to come.
This quarter, the US Fed has lowered the interest rate on 2 occasions on 31 July and 18 Sept respectively, putting the range of the fed fund rate at 1.75% to 2% amid uncertain economic outlook.
Back at home, the STI has