Trade tensions linger on as Chinese equities add to nervous tones
S&P 500 futures are now down by almost 0.5% and Treasury yields are at the lows for the day down by almost 2 bps to 2.855%. In turn, we're seeing a bit of flows back into the yen with USD/JPY having fallen to a low of 109.73 on the session.
It was hard to believe how well the market took in the rout in Chinese equities earlier on but we're starting to see some risk-off flows as investors digest the news. China's move to weaken the yuan further today is another signal that the trade rhetoric may not be going away any time soon and the market is responding in kind now.
