"We no longer doubt that the US administration’s proposals signal the direction of trade policy. An escalatory cycle of protectionist actions, not just rhetoric, has begun and will continue. This is what a vicious cycle looks like"
European stocks and U.S. futures blasted off higher early in the session following yesterday's euphoric, meltup close to US trading, but have since pared their gains as dark clouds gather over the G-7 meeting in Toronto and a growing number of emerging markets.
Global stocks, US equity futures and Treasury yields extended gains while the dollar slumped as "risk-on" sentiment returned after the U.S. and China exchanged trade proposals meant to avoid an escalation of economic tensions.
U.S. stock index futures turn negative in an illiquid, volatile session as investor sentiment has yet to stabilize amid doubts whether the U.S. equity selloff is over as yields remain just south of the critical 2.85% level.