• US equities lower amid renewed concerns regarding US-China trade talks
  • GBPUSD sells-off to lows last seen in April 2017 as no-deal Brexit risks increase
  • Brent drops c.3.5% after US-Iran tensions ease

US equities closed lower, coming off the recent record highs, amid renewed concerns over US-China trade talks after President Trump told reporters the US still has a long way to go before reaching a trade accord with China and could impose additional tariffs if it chooses (FT)
GBPUSD sold-off c.0.90% yesterday and continues to make new lows having traded below 1.2400 this morning (Bloomberg), a level last seen in April 2017. The risk of a no-deal exit from the EU increased after Tory leadership frontrunner Johnson’s demand that the Irish backstop must be ditched was rejected by Brussels
In the US, retail sales came in slightly better-than-expected at 0.4% vs. 0.2% m/m yesterday and helped the Bloomberg Dollar Spot Index hold gains at near one-week highs
Fed Chair Powell reiterated in a speech in Paris the Fed is “carefully monitoring” downside risks to US growth and “will act as appropriate to sustain the expansion”
Elsewhere, Brent traded c.3.5% lower yesterday after US Secretary of State Pompeo said Iran had signalled willingness to discuss its purchase of S-400 weapon programme (Bloomberg). The perceived escalation of US-China trade talks helped fuel the commodities sell-off