Risk mood softens after China tariffs statement
US futures pare all of its earlier gains before bouncing back a little now
I don't think what China is talking about is anything new but perhaps it puts a dent in recent hope and optimism ahead of trade talks next month.
That said, it is enough to temper with the calmer risk sentiment established over the past few hours as we see a pullback in US futures and Treasury yields.
I reckon this is more reflective of how fragile the risk mood in markets currently is.
As such, as mentioned earlier, be mindful of the release of US economic data later. Markets are feeble-minded and jittery right now so any sudden surprises will be enough to shift near-term sentiment on the day.
Not to mention, there will surely be more Trump tweets to navigate through as well. All aboard the merry-go-round now.