European cash equity markets have held lower this afternoon, weighed by the threat of a global trade war (FTSE -0.3%, DAX -0.7%, CAC -0.5%).

European Closing Report (by Sigma Squawk)

Wall Street is also firmly in the red after US President Trump ordered the US Trade Representative to consider an additional $100 Bln of tariffs on China. The Chinese Commerce Ministry have since responded, saying that they will not hesitate to retaliate to the latest US measures. They also stressed that the two sides cannot negotiate under these conditions. 

White House Trade adviser Kudlow meanwhile said the Chinese response to US trade actions has so far been unsatisfactory while he hopes for negotiations with China in the next few months. The US jobs report was also on deck this afternoon and non-farm payrolls fell short of expectation at 103K (f/c. +190K). The unemployment rate stuck at 4.1% (f/c. 4.0%) while average hourly earnings were a touch stronger month-on-month at +0.3% (f/c. +0.2%). 

The market reactions was initially choppy but US government bond yields and the US Dollar have both turned lower and remain on the back foot in recent trade, along with equities. Oil prices have also succumb to selling pressure with US crude futures losing around two-percent at the recent lows.

Elsewhere in FX, Sterling has moved to the top of the G10 pile amid no clear catalysts while the yen has also gained as risk sentiment soured. Still to come today, the Baker Hughes rig count, comments from Fed Chair Powell and San Francisco Fed President Williams plus US consumer credit.

Key Headlines/Data:

* US President Trump said there might be a little pain over the trade dispute with China. He added that they have already lost the trade war, and said he has a good relationship with Chinese President Xi and hops to work out the trade dispute.

* US BLS Employment Situation Summary (Mar):
– Non-Farm Payrolls +103K versus +190K expected, previous +313K revised to +326K
– Private +102K versus +190K expected, previous +287K revised to +320K
– Manufacturing +22K versus +20K expected, previous +31K revised to +32K
– Unemployment Rate 4.1% versus 4.0% expected, previous 4.1%
– Average Hourly Earnings M/M +0.3% versus +0.2% expected, previous +0.1%
– Average Hourly Earnings Y/Y +2.7% versus +2.7% expected, previous +2.6%

* Canadian Employment Report (Mar):
– Net Change In Employment +32.3K versus +20.0K expected, previous +15.4K
– Unemployment Rate 5.8% versus 5.8% expected, previous 5.8%

* Chinese Commerce Ministry said they are ready and will not hesitate to retaliate to the latest US tariff list. They also warned that under these conditions, the two sides cannot negotiate.

* Trump administration has confirmed new sanctions against seven high-profile Russian businessman and twelve companies.

* White House adviser Kudlow said trade negotiations with China have not really begun yet. He said the Chinese response to US trade actions has so far been unsatisfactory while he hopes for negotiations with China in the next months.

* Canadian IVEY PMI SA (Mar) 59.8 versus 60.2 expected, previous 59.6




































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