Market concern about the Italian government’s uncertain future and the potential impact on the Eurozone intensified into near panic, 2yr Italian bond yields jumping 190bp to levels last seen in 2012. Risk aversion took hold in global markets, US bond yields and equities lower and the “safe-haven” USD higher.

A slightly risk-averse mood again, this time fuelled by politics in Spain and Italy. The S&P500 closed down 0.2%, the US dollar rose, and US bond yields fell. Oil fell 3%-4% after supply comments from Saudi Arabia and Russia.

A slightly risk-averse mood again, this time fuelled by politics in Spain and Italy. The S&P500 closed down 0.2%, the US dollar rose, and US bond yields fell. Oil fell 3%-4% after supply comments from Saudi Arabia and Russia.

A slightly risk-averse mood was fuelled by news that the US-North Korean summit had been cancelled. The S&P500 is down 0.2% (although was -1.0% at one stage), and US bond yields and the USD are lower.

A slightly risk-averse mood was fuelled by news that the US-North Korean summit had been cancelled. The S&P500 is down 0.2% (although was -1.0% at one stage), and US bond yields and the USD are lower.

A risk averse tone for much of the overnight session, attributed to US/China/North Korea dialogue, boosted the US dollar to a five-month high and pushed US bond yields lower. FOMC minutes later helped extend the bond move.

A risk averse tone for much of the overnight session, attributed to US/China/North Korea dialogue, boosted the US dollar to a five-month high and pushed US bond yields lower. FOMC minutes later helped extend the bond move.

Risk sentiment was subdued amid concerns US-North Korean tensions could resurface. The S&P500 reversed initial gains to be down 0.2% currently, with similar price action in AUD and NZD.

Risk sentiment was subdued amid concerns US-North Korean tensions could resurface. The S&P500 reversed initial gains to be down 0.2% currently, with similar price action in AUD and NZD.

Risk sentiment perked up after US-China trade tensions appeared to relax over the weekend. The S&P500 is up 0.7%, oil and copper are up over 1%, and the AUD outperformed.