Stocks on Uneven Ground as Trade Tensions Flare Up

German bond yields fell to new lows on Thursday and U.S. treasury yields resumed their fall as renewed trade tensions doused a rally fueled by hopes for more central bank stimulus ahead of a European Central Bank meeting.

Sentiment had soured on a lack of progress in talks between U.S. and Mexican officials and President Donald Trump issuing a fresh threat to hit China with tariffs on “at least” another $300 billion worth of Chinese goods.



The latest flare up in tensions follows a mixed bag of economic data that rekindled woes over the health of the world’s top economies but also spurred expectations that central banks could ride to the rescue.

While MSCI’s broadest index of Asia-Pacific shares outside Japan and the Nikkei eased a touch, the pan-European STOXX 600 rose 0.6%, with Germany’s DAX up 0.7% while France’s CAC gained 0.6%.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza