Tariffs Drag On
The US administration removed the tariffs it placed on imported steel and aluminum produced in Canada, Mexico and Europe. With the deadline set by the US for tariff implementation in lieu of Chinese capitulation, the President could not afford to alienate his allies in what could be a serious economic dustup. The US has placed potential tariffs on over $150b worth of goods from the PRC. The Chinese have returned the favor targeting products from the central region of the US that elected the president. Beside the steel (25%) and the aluminum (10%), these are threatened tariffs
The markets have largely shrugged off the simmering trade dispute. Visits to the US by allies Merkel and Macron failed in their efforts to dissuade the president from his protectionist/mercantilist policies. Proof of the disregard markets attach to the fighting is the steady rise we have seen in equity prices this week and last. The FTSE is a choice example.
Silver Losing Ground
A consistent trade now for 2 weeks silver has lost 6.13% of its value in that time. Steep falls indeed. While volume has fallen back during the last day of the trade, indicating a lack of sentiment/momentum for the decline, we are of the opinion that the trend is still in train.
Tracking a weakening Cable rate for the last 2 weeks we have been recommending this trade due to strengthening US Dollar movements across the board as well as the results from the newest in the series of disappointments and setbacks in the Brexit negotiations where the May administration rejected continuing the customs union between Britain and the EU.