Global recessionary fears boost safe-haven appeal

The US 2-year to 10-year yield spread has inverted for the first time since 2007. A US yield curve inversion has preceded economic recessions historically whilst signalling a higher risk-environment in the immediate term.

A delay in US tariffs on Chinese consumer electronic goods though granting slight reprieve to risk assets has failed to restore investor confidence as market risks stay elevated.

Subdued global economic momentum and a prolonged Sino-US trade dispute continued to blunt risk appetites whilst creating supportive conditions for safe haven assets.