BEFORE THE BELL: Trade war worries come rolling back into global markets; BoC likely to announce interest rate hike
Investors are no longer able to ignore a growing economic problem as global markets are getting hit with a fresh wave of trade war worries. After keeping quiet on tariffs for the past few days, Donald Trump came back with a new threat against $200 billion in Chinese imports. This would follow a 25 per cent tariff on $34 billion in Chinese products.
Trump is also causing more tension with global leaders following his comments that Germany is being controlled by Russia.
This has weighted Asian markets and is expected to put pressure on the Dow at the open.
Across the border the TSX is preparing for a likely interest rate hike from the Bank of Canada. That decision comes down later this morning. Bank of Canada Governor Stephen Poloz will also give an outlook on the Canadian economy for traders to take cues from.
Ahead of that announcement the Loonie is down to 76.04 cents US.
Trade tensions are also hurting crude prices as industries affected by the tariffs pull back on their demand for oil. The price of US crude is slipping to 73.65 a barrel.