Analysts at ANZ explained that China and the EU have come out of talks united against the threat of US protectionism.
Key Quotes:
“China’s Vice Premier Liu He stated both China and the EU “firmly oppose unilateralism and protectionism and think these actions may bring recession and turbulence to the global economy”. Global equity markets were weak. The S&P 500 and DJIA were down 2.0% and 1.8% at the time of writing.”
“The DAX finished down 2.5%, the CAC 40 fell 1.9% and the FTSE 100 declined 2.2%.”
“However, the flight to safety was modest, with the yield on the US 10-year down just 2bps to 2.87% and the bund yield down 1bp to 0.33%. The USD was lower against all G10 with the exception of AUD, while the EUR outperformed.”
“Commodities softened, with the CRB Index down 1.1% at the time of writing. WTI gave back some of its recent gains, dropping 0.8% and gold dipped 0.2%.”
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