Tokyo's main index slumps as global growth concerns weigh on markets
A lack of fresh developments from US-China trade talks has helped to put the focus back on deteriorating global economic conditions and that is leading to risk aversion seen in markets so far today. The ECB kicked things off with downgrades to their economic forecasts yesterday and the heavy slump in China's exports data earlier certainly doesn't help to inspire confidence among global investors.
Chinese equities are taking it on the chin as they slump by more than 3% on the day thus far. Losses are more measured in US equity futures though, with E-minis only down by 0.3%.
That said, the theme in markets as we enter European trading is that of risk aversion and is continuing to fuel bids into the yen. USD/JPY now closes in on the 111.00 handle and I would expect European equities to open slightly lower as well, helping to underpin the softer risk tone that we're seeing now.
