Yuan traded as weak as 7.1925 against the USDollar … Spot Gold has exploded higher, testing US$1,550… US Equity futures are reeling with Dow Futures down over 400 more points … Treasury futures opened up dramatically, implying a 10Y yield of around 1.36% (around 8bps lower in yield).
The Aussie dollar gold price hit an all-time high of $2,310 per ounce this morning.
The ASX All Ordinaries is down 100 points to 6515.
Two things are going on here. The trigger is the US-China trade spat. But the reason is the herd’s realization that either the world is going to go into a recession soon or the central banks are going to have to print money to avoid a recession.
Perhaps the huge levels of debt are about to have an impact on daily lives. Debt is always paid, either by the lender or the borrower.