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Analysts at ANZ explained that the markets traded fairly tight ranges overnight with a light data calendar.  

Key Quotes:

“Moves were largely driven by geopolitical developments/headlines associated with China-US trade tensions, North Korean actions and Italian political developments.”

“US equities flip-flopped getting a boost from China announcing it would reduce tariffs on car imports to 15% (from 25%), before reversing somewhat on ZTE and North Korean tensions.”

“European bourses managed to eke out gains of up to 0.7% with car manufacturers buoyed by China lowering tariffs. US treasury yields traded fairly tight ranges to be unchanged at the time of writing.”

“Italian yields fell 5-7bps with it no longer clear the President will endorse the proposed populist government. The USD was slightly firmer against the G10, but emerging market currencies (outside of Turkey) rebounded.”