Escalating Trade Tensions Set Tone for Capital Markets

  • The US specified $200 bln of Chinese goods that will be subject to another tariff for its retaliation against the first round of tariffs ($34 bln of goods) for intellectual property rights violations.
  • Stocks and commodities mostly move lower, while the dollar and bonds move higher.
  • The Bank of Canada is widely expected to hike rates today.
  • Malaysia’s new central banker left rates steady as most expected.
  • The S&P 500 is poised to gap lower after gapping higher both Monday and Tuesday

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From the Securities Lending Trading Desk

We’ve seen additional short interest for cannabis stocks in Canada after the Senate approved a bill to legalize recreational marijuana, sending shares higher. The Australian arm of Domino Pizza Enterprises saw multiple broker downgrades last week amid an increasingly negative business outlook for the company. M&A activity is a key driver this week for securities lending in Europe.

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