Daily Morning Call

From the Floor: US tariffs and Italy drag on sentiment – #SaxoStrats

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The week opens with a distinct taste of unease after the sentiment-boosting decision by Germany's SPD party at the weekend to join a coalition and give Angela Merkel a fourth term in office is now being offset by Italy's very murky elections.

  • Italian election and Trump's tariffs weigh on markets
  • US 10-yr treasury yields rose from 2.79% to 2.86% 
  • US 2-yr yields rose from 2.19% to 2.24%
  • Equities to tread water this week; tariff worries continue
  • China's response to Trump still muted but equities have fallen
  • Commodity focus: Tariff “war”, CERAWeek, WASDE and China 
  • Oil higher as Libya’s supply is cut by 1/3 after pipeline closure
  • Gold bounced strongly after hitting key support at $1300/oz