In overnight trading Bitcoin hit an eighteen-month high as crypto currencies continued their resurgence. Bonds came under pressure, as markets shifted back towards growth related assets. Although broad market indices were flat to down, tech stocks and crude oil found support as US national accounts components data came in slightly better than expected.

Markets are showing signs of trade dispute fatigue. In a television interview, President Trump waved the tariff stick once again, referring to a plan B to increase tariffs if he doesn’t like what he hears from President Xi. The White House must be aware that public threats are counterproductive to negotiations, and Trump’s comments are an indication there will be no progress at the G-20 meeting this weekend. Markets largely shrugged.

In typically volatile trading Bitcoin peaked around US $13,850 before slumping to $11,400. It then bounced back to levels near $12,500 this morning. Crypto markets march to their own beat, increasing their attractiveness in uncertain times for traditional markets.

A drop in gold prices provided further market evidence of a move towards growth exposures. Commodity currencies found support, and the Australian dollar lifted, threatening to breach 70 US cents. Share futures point to modestly higher opening levels in Japan and Hong Kong, although a slew of REIT ex-dividends appeared to weigh on the Australia 200 index.