Global stock markets have been hammered this week. U.S. stock indexes are at three-month lows. Price action this week strongly suggests the U.S. stock indexes have put in near-term tops, if not major tops. The sharp decline in the Chinese yuan against the U.S. dollar is in focus again late this week. The depreciating yuan makes China’s exports cheaper on the world market, but it also invites capital outflows from China. The U.S. has warned China about using its currency to gain world trade advantages. The keen risk aversion now in the marketplace is also due in part to rising world government bond yields, with the implications being rising inflation along with the negative impact on global stock markets. U.S. Treasury prices are actually higher today, on safe-haven demand. Discussion among traders and investors now is whether the Fed will take its foot off the gas on raising U.S. interest rates. President Trump on Wednesday, following the U.S. stock market sell-off, said “the Fed is making a mistake” and “I think the Fed has gone crazy.” Such rhetoric from the U.S. president will surely garner the attention of the Fed’s FOMC members who set interest rate policy. Stay tuned!