Global market snapshot: risk sentiment dented by trade-war fears - ANZ

Analysts at ANZ noted that equities fell, with global risk sentiment dented by news the US is thinking about raising the 10% tariff on USD200bn worth of China’s imports to 25%.

Key Quotes:

"This comes after China said that blackmail will not work on them and that they would retaliate against the US if additional trade measures are imposed. USD and JPY strengthened with AUD and NZD underperforming in the G10."

"Bonds sold off, particularly at the long end, following moves in JGBs (10-year yield +6.3bps), with the Bank of Japan now willing to tolerate greater moves."

Adding to this was the announcement that the US Treasury will increase 5-year issuance more than expected. The US 10-year note has been flirting with 3% since the announcement. The market took the FOMC decision to hold rates in its stride, with only minor tweaks to the statement. Oil fell 1.5% and gold 0.5%."