Market response to Trump: Nikkei flat, HSI up, FX in yesterday’s ranges

Market reactions to the news that Trump is trying to triple down on the tariffs on Chinese products are so far mild. Nikkei has been fluctuating between gain and loss and is trading nearly flat at the time of writing. While China is still away on holiday, Hong Kong is back with HSI trading up 1.26%.

In the current markets, major pairs and crosses are trading inside Friday’s range as seen in the D heatmap.

But market reactions on the trade war issue has been somewhat delayed recently. We’ll have to wait for European open, at least, to get a better idea on how serious are traders on Trump’s proposal.