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Analysts at ANZ Bank New Zealand Limited explained that Trump’s advisor Kudlow said overnight that trade talks with China have stalled and the ball is in Xi’s court.

Key Quotes:

“He said that the threat of an extra $200bn of tariffs is to keep the pressure up.”

“On Europe, he said that an attractive trade offer is rumoured to be in train.”

“And on Mexico he said that good progress is being made. Meanwhile, companies in the US are becoming more anxious.”

‘The Fed’s beige book noted that manufacturers in all districts are concerned, with price increases and supply disruptions being experienced as a result of the new trade policies.”

“Rising costs of lumber and imports may have contributed to the fall in housing starts in June. It could just be a blip, but it does highlight how possible trade impacts can be widespread.”