Week Kicks Off with a Fire Sale on U.S. Equities, Bonds, and the Dollar

U.S. equity futures point to a turbulent start to the week

Highlights

• U.S. equity futures point to a turbulent start to the week

• Deutsche Bank says Chinese investors shift from U.S. assets to Europe and gold

• Current tariff barrage is the biggest assault on the trading system since 1971

• India and U.K. are likely winners from this global trade war

Key Takeaways

• Markets Face Turbulence as Futures Fall: There’s more turbulence to kick off the week, with U.S. equity futures squarely in the red (Dow down -360 points) and Asian markets all over the map. The 10-year T-note has failed to garner any flight-to-safety bid, with the yield climbing +3.5 basis points to 4.36%. The DXY dollar index is sliding, falling more than -100 pips to 98.15 — its lowest level since March 2022. The Japanese yen has made a huge move (over +1.0%) to nearly ¥140 — its best level in seven months — and is on the verge of breaking critical resistance levels. A breakout here sets up nicely for a further move toward ¥130. The currency has gained more than +7.0% since our pound-the-table recommendation — my very last big trade.