Analysts at ANZ explained that risk sentiment was shaky overnight, with trade tensions gathering steam.
Key Quotes:
“Global equities fell with declines in Europe around 1 ½% and US stocks off about 0.5%. Commodity prices were hit, with the CRB index down 3%. Treasury yields fell while a policy rate hike by the Bank of Canada to 1.5% saw the Canadian yield curve flatten.”
“The US dollar firmed against all in the G10 with AUD and NZD hit the hardest. Emerging market currencies were also on the back foot with a notable depreciation in the renminbi, with USD/CNH reaching 6.72 level (up 1%). Oil fell sharply despite stronger inventories, driven by the stronger dollar, reports that Libya is reopening ports, trade fears, and the possibility of the US allowing some country exemptions to Iran’s oil sanction. WTI is down over 4%% and Brent is close to 6% lower. Gold dropped 1.0%.”
Share
