"Sea Of Red": S&P Futures, Bond Yields Tumble As All Out Trade War Becomes "Base Case" -Zero Hedge
"Yesterday's modest selloff has become an all-out rout, dragging world stocks lower for 4 of the past 5 days, with US equity futures tumbling and global markets a 'sea of red' as fears grow that the China-U.S. trade conflict is fast turning into a 'technology cold war' and as Wall Street's denial is finally shifting to acceptance that a lengthy, all-out trade war is now inevitable, and the only way out and for someone to concede is for markets to plunge.
Sure enough, that's what they are doing this morning. 'It's tin hats on and battening down the hatches for a fair bit of volatility for the next few months,' said Tony Cousins, Chief Executive of Pyrford International, the global equities arm of BMO Global Asset Management. 'We are as defensively positioned as we could be,' he said, adding it was impossible to predict what steps Trump was likely to take next in the trade war with China. Analysts at Nomura warned in a note that 'without a clear way forward during an intensifying 2020 U.S. presidential election, we see a rising risk that tariffs will remain in effect through end 2020.'....Goldman Sachs, Nomura and JPMorgan Chase 'are among those that have rewritten their forecasts as U.S. President Donald Trump threatens to impose a 25% tariffs on around $300 billion of additional Chinese imports.'"