Once again the markets are fluctuating on no new news.
The key threat to all markets is that credit tightening in the context of (at best) anaemic growth. This will lead to a rise in credit defaults. The downturn in consumer demand within developed countries will also lead to credit defaults which in turn will lead to greater tightening and yet more defaults.
What is even more worrying is US Treasury Secretary Steven Mnuchin trying to shift the emphasis to Trump's tariff war. The tariffs have not had time to impact trade volumes or company performances (yet) and are in any case a small, albeit tangible component of a much bigger picture.
This media bite from the US Treasury Secretary focusses on the wrong question.
"The market is trying to figure out: 'Is there going to be a real deal at the end of 90 days or not?'" US Treasury Secretary Steven Mnuchin told a forum hosted by the Wall Street Journal CEO Council. "
