Market Comment | A dash of optimism from China.

Summary

China’s stronger-than-expected daily fixing of its currency and an unexpected rise in Chinese exports cushioned rising fears over a worsening trade conflict. Despite signals of some renewed risk appetite, markets remain cautious over the potential for further escalation in the trade war.

Key points

• Key points:
• Sovereign bond yields halted yesterday’s sharp decline while stock markets inched up.
• China is keeping its door open to talks with the US in September despite escalation in tensions.
• Gold prices took a breather from recent surge although JPY remains in demand.

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