Bond yields and world stocks fall on renewed US-China trade-war fears
Trade fears spread to Europe as Germany’s DAX falls 1.1% and STOXX 600 dips 0.5%; eurozone bond yields edged down
London — Fears of an escalating trade dispute between the US and China spread from Asian markets to Europe on Thursday, triggering a fall in bonds yields and stocks, particularly among exporters. Germany’s blue-chip index DAX 30, which is seen as a trade-war proxy, fell 1.1% about an hour after the open while the broader pan-European STOXX 600 was down about 0.5%. Eurozone government bond yields edged down with borrowing costs in Germany and France pulling back from seven-week highs as demand for safe-haven debt grew after the US administration increased pressure on China by proposing a higher 25% tariff on $200bn worth of Chinese imports. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.6% down, dragged down by a 1.8% fall in Chinese H-shares. Analysts blame the current retreat in world stock markets on the uncertainty around the trade policy of the Trump administration, while recent corporate results are seen as encouraging. "One needs to have a strong gut feeli...
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