Market Comment | China retaliates, intensifying the risk-off market mood

Cautious tone prevailed in financial markets during most of the morning, after the US and China failed to salvage a last-minute deal to avoid the latest US tariff hikes, in turn leading to the escalation of the trade war.

Key points

• Key points:
• Risk-off mood intensified after China’s decision to retaliate against the US.
• Investors sought shelter in safe-haven currencies, especially JPY and CHF.
• Equity markets bore the brunt of investors’ angst.

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