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"The escalation of trade wars outside of China and the lack of US budget support this year suggest that US exceptionalism could be threatened," writes Mark McCormick, a world leader. of the foreign exchange strategy at TD Securities. "Even if we think that the recent warning to Mexico could be resolved, the way forward on the global trade front will probably be challenged until the G20 later this month."
The leaders of the 20-nation group will meet in Osaka, Japan, at the end of June.
Stocks around the world have fallen into the uncertainty of trade since the beginning of the year. Last week, the Dow recorded its longest run of weekly losses since June 2011. Nevertheless, the Dow is still up more than 6% this year and the S & P still close to 10%.
In May, the Dow and the S & P posted a 7% decline, their worst performance since December, while the Nasdaq fell 8%, posting its worst performance since May since 2010.
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