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DOW erases all 2018 gains

Published October 25, 2018

Author: Nicholas Cork

A heavy night on Wall St as the DOW falls 600 pips as signs that the trade war is impacting the US economy emerge. Chipmakers revised forecasts lower as tariffs impact, and news that US factories are raising prices in necessity as the impact of tariffs on the components used in production is weighing. Sales of new US family homes showed a drop to 2 year lows indicating that higher house prices and mortgage rates are impacting buyers, and this will be watched closely in further releases to see that this is not spreading to the broader economy. Also, the US commerce department has just classified imports of certain Chinese steel wheels as being dumped in the US market.

The news didn’t get any better as the Italian PM had to deny asking Putin to buy Italian bonds, Putin says that Russia can respond to the US quickly and efficiently after the US pulls out of nuclear treaty, and the Saudi situation still seems to be missing plenty of credibility.

No local data today, eyes will be on Chinese equities for direction. AUDUSD is hovering near recent lows as I type.