Market wrap: market concern over a US-led trade war deepens - Westpac

In a market wrap, analysts at Westpac explained that the market concern over a US-led trade war deepened as President Trump ordered tariffs on imports from China and warned of more action. 

Key Quotes:

"As largely expected, President Trump ordered Trade Representative Lighthizer to levy tariffs on at least $50 billion (as much as $60bn) in Chinese imports. This is largely pitched as retaliation for intellectual property theft. The next step is to determine which products will be covered by the order, a process due to take 15 days. Trump said that this executive order is “the first of many.”

"US business leaders have been resisting the White House’s protectionist plans for months and many expressed their concern today so little wonder US stocks opened sharply lower and stayed heavy. This followed weakness in Asia and Europe, seemingly also unsettled by the US-driven trade tensions."

"Equities and bond yields fell sharply and AUD/USD reversed its post-FOMC gains, sliding back to 0.7710."

"The Bank of England edged closer to a rate hike."

"Today's calendar includes Japan CPI, US durable goods orders, Canada retail sales and CPI plus plenty from Fed officials."