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China's trade threats deal fresh blow to world stocks

News Service
14:37 - 15/08/2019 Thursday
Update: 14:41 - 15/08/2019 Thursday
REUTERS
The German share price index DAX graph is pictured at the stock exchange in Frankfurt
The German share price index DAX graph is pictured at the stock exchange in Frankfurt

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As the Sino-U.S. trade war escalates, long-dated bond yields have fallen across the developed world, flattening yield curves in what is considered a clear signal of a worsening growth outlook.

What sent the U.S. curve over the brink into inversion was German data on Wednesday that showed the economy had contracted in the quarter to June. That came on the heels of dire Chinese data for July.

The British yield curve also inverted. The German curve is at its flattest since 2008.

Oil prices plunged with Brent crude losing another 2% to $58.4 a barrel, after shedding 3% overnight.

Safe-haven gold was up 0.3% at $1,520 per ounce, just off recent six-year highs.

The yen was flat at 105.8 to the dollar, having earlier traded at 106.74. The currency has gained against the dollar for eight of the past 10 sessions. Excluding a mini-crash episode in January, it recently hit 17-month highs .

The dollar index was down at 97.862, the euro up at $1.1155.

#China
#US
#RBC Capital Markets
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