Nerves are on edge and risk sentiment has soured after President Trump said he was considering tariffs on an additional $100 billion of Chinese imports. Despite this, the dollar is trying to rally.

• Trade war escalates but how much is just political bluster?
• Trump seems peeved that China is 'targetting his voters' 
• The market seems to want to buy USD, it's trying to rally 
• Average hourly earnings result is key today with +2.7% expected 
• Inflationary pressures could be back in the frame next week 
• Equities: tariff tiff good EM, utilities, telecoms and healthcare 
• Equities: bad for banks, industrials, consumer discretionary, US equities