Fixed income, rates, currencies: Nervousness abounds

is us economic growth losing momentum

The weak US non-farm payroll (NFP) data for May, far below forecasts, sent rates falling and stocks rising, on the supposition that it raised the likelihood of interest rate cuts from the Federal Reserve. On the other hand, while risk markets cheered the prospect of easier money, the hardline approach taken by the US towards China, and China’s uncompromising responses are raising investor nervousness.

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