While markets in Germany, France and Italy as well as other major European countries were closed for Labor Day, the US and Mr Trump restarted not only the economy but threats to initiate new tariffs on China. European stocks finished their strongest month since October 2015 but markets seem to be turning again and that is lower. This current selloff seems to be technical – markets have rallied a long way in a short period of time. Also, the US is now challenging China on tariffs.
The US of course has called out the World Health Organization of WHO and China for delaying a formal announcement on the coronavirus. As president Donald Trump sharpened the rhetoric against China, there will be concerns of a trade war escalating while the coronavirus is still slowing the global economy. This is getting messy and a trade war can only spell trouble for both the US and China, while President Trump continues to push for a trade agreement.