Asset Allocation for April 2018

In the early April world economy keeled over through austerity measures by Donald Trump over national US economy protections from low-price imported Chinese goods.

Trade war between US and China was announced on the 23rd March and continued in April by new more tight measures from both sides. Following tariffs hike on aluminum and steel imports to US, President Trump proposed additional tariffs on $50 Billion in Chinese Electronics Imports. In response China threatened to retaliate against the new U.S. tariffs by its own taxes on imported advanced manufacturing, chemistry and aerospace from US.

Though calm rhetoric from Trump and Xi has followed shortly, none of official persons from US and China didn’t make alternative demands on purpose to solve the trade problem. That’s why the trade war is just set to gain ground.

Oil prices showed amazing endurance on several favourable conditions such as inventory drop in US, hostility in Syria and US policy on Iran revision. Leading investment banks started to publish reports with $80 barrel oil price target.

Threat and challenges in world markets:
- Monetary policy tightening by US FED
- Donald Trump’s protectionist government policy
- New US and UK sanctions against Russia on Syria and Skripal issues

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