China Retaliates against the US with Higher Tariffs

Market sentiment was hit again yesterday, as tensions between the US and China over trade intensified. Trump warned China not to retaliate over Friday’s tariff hike as this will only get things worse. However, the nation defied those warnings and officially announced that it would proceed with higher tariffs on USD 60bn worth of US goods from June 1 st. As for today, apart from headlines over the US-China saga, we will also keep an eye on the economic calendar, with Sweden’s inflation data for April and the UK employment report for March scheduled to be released.