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Analysts at ANZ explained that risk-off trading was dominant overnight, with treasury yields lower, stocks lower, and USD dollar and yen bid.  

Key Quotes:

“European bourses fell 1.1-1.5% and the euro fell to the lowest level  in six months, with disappointing PMI data contributing.”

“US  equities fell 0.3-0.6%, then retraced losses late in the session on FOMC minutes, which were interpreted as dovish.”

“Pressure remained on emerging market currencies.  

“The Turkish lira got some respite from its record low, with Turkey hiking rates by 300bps at an emergency meeting.”

“The USD rallied against all currencies in the G10, except yen, which rose 0.8% with the risk”‘off tone.”

“US yields fell 3-7bps across the curve, with similar moves in Europe. In Italy, yields gave back yesterday’s declines, increasing 3-9bps. Oil dropped 0.7% on stock-building in the US and gold was up 0.3%.”