Market Comment | Markets bring forward Fed rate cut expectations. ECB Preview

Summary

Risk-off mood prevails in financial markets as trade tensions increased concerns over a possible global recession after the threat of US tariffs extended from China to Mexico. Safe-haven bond yields fresh record lows today, while bond and equity volatility soared.

Key points

• Key points:
• Markets' implied probability of a Fed rate cut in 2019 rose significantly to 98% in 2019.
• The U.S ISM manufacturing disappointed, undershooting expectations.

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