US-China tensions threaten to turn into currency war

'Prepare for market correction'

clock • 4 min read

Investors must buckle up and prepare for a "bumpy ride" in equity markets as the trade tensions between the US and China threaten to escalate to a full-blown currency war, experts have warned.

Market commentators have suggested it is time to seek out defensive positioning and take some risk off the table in case tensions between the world's two largest nations fail to subside. Market volatility was sparked once again when US President Donald Trump announced plans to slap fresh tariffs of 10% on the remaining $300bn worth of Chinese imports that were not impacted by his first round of taxes. David Jane: Summer lulling - risk happens so fast … The Chinese authorities responded by allowing the renminbi to fall below the psychologically important barrier of RMB7 to the US do...

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