Sentiment remained downbeat, causing US equities to fall (S&P500 down 1.3%), with US interest rates and the US dollar also lower. Weighing on markets were persistent trade war concerns, potential for a snap election in Italy with implications for Brexit, HK unrest intensifying with the closure of the airport, and a populist won a primary election in Argentina.

Sentiment improved as trade war angst appeared to recede, China’s currency weakening yesterday not as sharp as feared. The S&P500 is up 1.6%, and US interest rates, the AUD and NZD, and many commodities are all slightly higher.

Markets were initially in a risk averse mood but sentiment during the NY session. Equities are little changed, while US interest rates rebounded from multi-year lows, and the AUD and NZD partly retraced some of yesterday’s RBNZ-led decline.

US equities rose after China’s currency stabilised yesterday, possibly indicating calming of the US-China trade war. The S&P500 is up 1.3%, and the US dollar and US interest rates are slightly higher.

Global equities fell sharply overnight as the US-China trade war escalated, the S&P500 down 3.3%. US interest rates, US dollar, and major commodities also fell, while safe havens such as gold rose.

Global equities and interest rates fell further after both US and China threatened further action in the ongoing trade war. US jobs data was mixed and had little market impact.

US equities and interest rates fell sharply after the US-China trade war escalated with US President Trump’s tweet that the US would impose additional tariffs on imports from China. The AUD was worst hit among major currencies.

The Fed cut its policy rate by 25bp and left the door open for more, but described this as an insurance cut rather than the beginning of a easing cycle. That disappointed markets which were positioned for a more dovish outcome, pushing US interest rates and the US dollar higher and US equities lower (S&P500 -1.1%).

Interest rates and currencies remained contained ahead of the Federal Reserve’s decision, while mixed headlines on the US-China trade talks left the S&P500 0.3% lower.

US equities rose – the S&P500 up 0.7% to a fresh record high – and the US dollar made two-month high, following stronger-than-expected US GDP data.