In Asian Equity Markets stocks in mainland China fell on Thursday morning, with the other Asian markets following suit, amid a renewed threat to trade. Shares in mainland China slipped in early trade, with the Shanghai composite declining 0.71%, while Hong Kong’s Hang Seng index declined 0.53%. The Nikkei 225 fell 1.25% as shares of index heavyweights Softbank Group and Fanuc declined. The Topix also shed 1.38%. South Korea’s Kospi declined 0.26% as shares of Celltrion fell around 1%.

In Currency Markets the U.S. dollar nursed light losses on Thursday, weighed down by lower U.S. yields and a rebound in the pound from 27-month lows. The Fed is widely expected to lower interest rates by 25 basis points (bps) at its July 30-31 policy meeting, with some in the market wagering on a larger 50 bp cut. Sterling  was steady at $1.2434. It had fell to $1.2382, its lowest since April 2017 on Wednesday amid growing risks of Britain leaving the European Union in a no-deal Brexit, before selling abated.

In Commodities Markets oil prices fell on Thursday, extending declines into a fourth day, after official data showed U.S. stockpiles of products like gasoline rose sharply last week, suggesting weak demand during the peak driving season. Brent crude futures were down 15 cents, or 0.2%, at $63.51 a barrel. They fell 1.1% on Wednesday. U.S WTI crude futures fell 26 cents, or 0.5%, to $56.52. The U.S. benchmark fell 1.5% in the previous session. U.S. crude inventories fell 3.1 million barrels, the EIA said, more than analysts’ forecasts for a decrease of 2.7 million barrels.

In US Equity Markets stock indexes fell on Wednesday as weak results from CSX Corp stoked concerns that the protracted trade war between the United States and China could hurt corporate earnings. CSX shares fell 10.3%, their biggest one-day drop since 2008, after the rail freight company posted lower-than-expected quarterly profit and cut its full-year revenue forecast. Ongoing trade tensions have contributed to a decline in truck and rail freight volumes in the first half of 2019. the S&P 500 fell 0.65%, to 2,984.42 and the Nasdaq Composite declied 0.46%, to 8,185.21.

In Bond Markets U.S. Treasury yields fell on Wednesday as concerns about the U.S.-China trade war boosted demand for safe haven debt and after data showed weakness in the U.S. housing market. Benchmark 10-year notes gained 17/32 in price to yield 2.06%, down from 2.12% late on Tuesday. Yields have risen from more than 2-1/2 year lows reached earlier this month and the yield curve has steepened as recent data including jobs, inflation and retail sales data showed an improving U.S. economy.