Market Comment | Gloomy economic data, amid lingering trade concerns

Summary

This week’s strong demand for bonds was driven by the fragile global macro backdrop. Chinese data continued to disappoint, U.S.-China trade war uncertainty lingered and the BoJ stepped up its dovish commentary.

Key points

• Key points:
• Disappointing economic data in the U.S. and China increased cyclical concerns, amid lower expectations of a long-term trade agreement between the US and China.
• The Eurozone showed a resilient GDP growth in 3Q19, but it was not enough to curve today’s negative market sentiment.
• UST bond yields fell significantly despite the Fed signalled a pause in the easing cycle.

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