The week started with the US and China announcing tariffs against one another which will come into effect on 6 July, and it will end with the European Union announcing counter-tariffs against the world’s largest economy in response to those already imposed. While much of what has been announced this week was already anticipated, the rhetoric between these huge trading partners is heating up and that’s a major concern for investors.
The mood in financial markets is relatively upbeat at the start of a very busy week, as investors shrug off the G7 meeting that didn’t exactly go to plan as President Donald Trump rejected the prepared communique and left early.
While President Trump has at times appeared friendly with certain other heads of state in the past, the relationships have at least appeared to have become more hostile since tariffs were imposed on the European Union, Canada and Mexico by the United States last week. The G7 meeting has become more like a G6+1, with Trump choosing to isolate the US on a number of issues from trade to Iran and climate change.
It’s been a relatively positive start to trading in Europe on Wednesday, with much of the attention falling on President Donald Trump’s decision to withdraw from the Iran nuclear deal. Crude oil is back trading at three-and-a-half year highs this morning after Trump confirmed that the United States will be withdrawing from the Iran nuclear deal and sanctions will be restored.