- China will not sit idly by and will be forced to take countermeasures if the US deploys intermediate-range missile in Asia.
- USD/CNY hit fresh highs on US Treasury called China out in an official paper as a currency manipulator.
In further geopolitical tensions, the Chinese Foreign Ministry official has said that China will not sit idly by and will be forced to take countermeasures if the US deploys intermediate-range missile in Asia.
This, in addition to the trade wars and recent spike in USD/CNY, risk is off and stock markets have been in freefall. Wall Street’s benchmarks ended on Monday in a sea of red and resulted in the biggest decline of the year for S&P 500 but equally poor performances across the board for the Dow and Nasdaq.
China retaliated to the US’s additional tariffs on Chinese imports and threatened to ban the purchase of US ago-products as well as allowing its currency to fall sharply against the dollar. The USD/CNY hit a fresh high in early Asia when the US Treasury called China out in an official paper as a currency manipulator.
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