Global Daily: Sustaining the Unsustainable

The Dow Jones, NASDAQ and S&P500 closed around half a percentage point higher on Friday following comments by Donald Trump to Fox News that elevated tariffs on China are not “sustainable”. Markets seem to be interpreting this line as the latest incidence of TACO (Trump Always Chickens Out) and bidding up risk (except Bitcoin) as a result. Gold prices dipped from record highs, yields on 10-year Treasuries fell 3.5bps and the DXY index strengthened to 98.43.