Global wrap: light summer trading volumes continued - ANZ

In a global market wrap, analysts at ANZ explained that light summer trading volumes continued as PMIs came in at relatively similar levels to last month. 

Key Quotes:

"Equities were down slightly with key euro indices down 0.1-0.2%. The S&P and DJIA were down 0.1% and 0.2% respectively at the time of writing. The US Treasury curve bear flattened with the 2-year yield up 1.7bps and 10-year unchanged. USD rallied against all G10 after additional US-China tariffs were put in place. AUD underperformed, maintaining yesterday’s political related moves. Oil was largely unchanged and gold was down 0.9% on the stronger dollar."

"As expected, the US and China implemented another round of tariffs on each other yesterday to the tune of US$16bn, bringing total two-way tariffs to $100bn. China has signalled that it “resolutely opposes this” but will continue to take retaliatory measures. China also announced it will make a formal complaint to the WTO about US measures. 

Meanwhile, Trump continues to maintain a hard stance, urging that more focus be put on China during discussions on the Foreign Investment Risk Review Modernization Act. All the while, low-level talks between US and Chinese officials are currently underway in Washington. So far, tariffs implemented represent just a small part of what’s been threatened. And with further escalation a key risk to the global demand backdrop, the New Zealand economy is not immune."