U.S benchmarks are lower this morning with the S&P 500 and Nasdaq both down more than 0.5% on emerging market fears and the escalation of the conflict with Turkey. China is leading the way lower on a delayed reaction to Monday night’s trio of dismal reads; Industrial Production, Fixed Asset Investment and Retail Sales.
Global equity markets are lower this morning and we cannot say we are surprised. In fact, we warned of this exact scenario; U.S and China trade tensions will build in the headlines once we got through Apple’s earnings and the Fed drift. The Bank of England hiked interest rates 25 basis points this morning as expected, but a warning of economic headwinds has sent the Pound a penny lower.