Markets are in a risk-off mood to start the European morning
- Weekend HK press - China questions whether to continue trade talks with the US
- China said to ask State buyers to halt US agriculture imports
It's an ugly start to the day for risk assets as equities are battered while bonds are soaring amid further negative developments in the US-China trade rhetoric since Trump's latest surprise tariffs announcement last week.
The yen is the lead gainer as such, prompting Japanese authorities to verbally step in to manage the currency's strength with USD/JPY falling below 106.00 in a flight to safety. The franc is the other main beneficiary and will once again prompt potential action by the SNB before its 19 September monetary policy meeting.
The dollar is trading mixed amid all of this as it gains against the commodity currencies bloc. The risk-off sentiment is weighing on the likes of the loonie, kiwi and aussie with the latter being the laggard as we begin the session.
Looking ahead, all the attention is on risk flows as we start the week and despite some data points to move things along in the session, trading sentiment will largely be dictated by risk sentiment for the time being.