The Oolong incident?! Trump has just tweeted that the trade deal with China is still intact. Gold prices rise and fall sharply.

SMM: in Asian trading on Tuesday, White House trade adviser Navarro frightened financial markets with comments on the "end" of the Sino-US trade agreement on Fox Television, causing a sharp deterioration in risk sentiment.

Navarro (Peter Navarro), director of the US National Trade Commission, said in an interview with Fox News that the trade agreement with China was "over", sparking a wave of risk aversion.

Navarro said on Monday that the trade agreement between the United States and China was "over" and said the breakdown of the talks was related to China's earlier concealment of the new crown epidemic, which outraged Washington.

After the release of the report, market sentiment deteriorated significantly, global financial markets shook, US stock futures plunged more than 1% in the short term, and Dow futures fell more than 300 points.

Risky currencies such as the Australian dollar and the New Zealand dollar were sold off. Traders are unsure of the severity of the comment, but if the Sino-US trade deal does break down, investors may worry about a renewed trade war between China and the US, frustrating Australia as a major exporter to China.

Later, however, the stock market rebounded as there were reports that Navarro was reversing his earlier claims. Analysts point out that such big moves will not be made in this way.

In addition, US President Donald Trump's chief economic adviser Cudlow (Larry Kudlow) also came out to put out the fire, and Trump also retorted on Twitter.

Cudlow said the United States continued to engage with China after the first phase of the trade agreement signed in January, while trade negotiator Leiter Sitzer (Bob Lighthizer) said the trade agreement was progressing smoothly.

"the trade agreement with China is still intact," Trump said on Twitter. I hope they will continue to abide by the terms of the agreement! "

Navarro also issued a statement in response, saying that the media got the context wrong and that he was not talking about the first phase of the agreement, but that he had no confidence in China. But the Sino-US trade agreement is still in force.

After the above clarifications, market risk sentiment rebounded rapidly, and US stock futures quickly recovered most of their previous losses and are now basically flat.

Asian shares rose across the board, while A shares turned red after a short dive.

Spot gold fell sharply in the short term, losing $1750 at one point, hitting as low as around $1747.

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