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According to analysts at Danske Bank, focus will continue be on the escalation in the US-China trade conflict  and notably on the Chinese response to the new tariffs announced by the Trump administration overnight.

Key Quotes

“NATO will start its two-day meeting today.  While normally not a market mover, US President Trump has been calling for increased contributions from other NATO members. Any disagreement or potential change in the structure/ dynamics of NATO should fuel a risk-off environment.  Also, UK political developments are likely to stay in focus.”

“The Bank of Canada is widely expected to hike the overnight rate target by 25bp to 1.50% at its meeting today.  Canadian data has been strong lately while the BoC has kept its tightening cycle on hold since January.”