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Market Comment | Risk assets slide as trade war worries aggravate global growth fears

Published on Friday, May 31, 2019

Market Comment | Risk assets slide as trade war worries aggravate global growth fears

Summary

Risk-off mood intensified as trade tensions dampen chance of a trade truce, mounting concerns about its impact on global growth outlook, amid broad based weakness in manufacturing.

Key points

  • Key points:
  • Safe-haven yields hit multi year lows, with term premium declining.
  • Markets’ see an 80% chance of Fed rate cut in 2019.
  • Trump’s tariff action on Mexico weighing heavily on Mexican the peso as well as oil.

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Authors

Cristina Varela BBVA Research - Principal Economist

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Report (PDF)

MC_310519.pdf

English - May 31, 2019

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