Risk-off flows see haven assets gain ground in European morning trade
Bonds are also staying more bid while equities are seeing red across the board so far in European trading. The risk mood remains more defensive with US-China tensions heightened amid some fighting words by China over the HK bill passed by the US Senate.
This doesn't put off hopes of a "Phase One" trade deal just yet but with not much optimistic news as of late, it could potentially add yet another hurdle for both sides to overcome in trying to reach a resolution on the matter.
In any case, risk currencies are the laggards at the moment with USD/CAD racing above 1.3300 and AUD/USD staying pressured towards the 0.6800 handle.
The DAX is down by 1.0% while US futures are lower by about 0.4%. Meanwhile, US 10-year yields are holding weaker by 4 bps at 1.741% currently.
