Markets dominated by the fear of a trade war between China and US – Danske Bank

The markets continue to be dominated by the fear of a trade war between China and US as China has responded with tariffs against the US, after the US announced tariffs of at least USD50bn, points out the research team at Danske Bank.

Key Quotes

“China has put tariffs of USD3bn on US goods, which includes pork and steel.”

“This sent equities tumbling yesterday and the Asian markets are all in negative territory this morning with a decline of 2-4%. Safe haven assets such as US Treasuries and Bunds have gained significantly. Treasuries continued their gains this morning in Asian trade and 10Y US Treasury yields are now close to breaking through 2.8%.”

“Oil prices continue to rise and are now close to breaking through USD70.”