Perhaps embarrassed by their overly positive reaction to Monday’s trade truce news, the markets nosedived on Thursday, with the US open only serving to exacerbate what was already a nasty set of losses.
The Huawei arrest appears to be the straw that broke the camel’s back. The rapidly dwindling good-feeling towards the US and China’s vague trade war ceasefire turned actively hostile on Thursday, investors fearing that, 90 day truce or not, the relationship between the two superpowers might be about to take a turn for the worse.
Dropping 500 points the Dow Jones found itself sinking under 24600, back to where it began last week. The index has put in a remarkable performance in the last 10 days, climbing 1500 points in the final few tradeable days of November, only to shed almost all of that as the post-G20 glow quickly dissipated.
The dollar also took a beating, shedding 0.8% against the yen, 0.5% against the euro and 0.3% against the pound (the greenback will be looking for revenge during next week’s Brexit nightmare).
The gains in the Eurozone were pretty damn uniform. As in, uniformly terrible, the FTSE and DAX both plunging around 3% as the session wheezed on, leaving the pair at fresh 2 year lows.
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