The re-ignition of the US-China trade worries following US’ Navarro’s comments triggered a fresh round of risk-aversion across the financial markets this Wednesday, sending the US Treasury yields deeper into losses. The US dollar was dragged down across the board by the selling in the US rates while Gold prices rallied hard to retest 1440 barrier, as global growth concerns also returned to markets

Across the forex board, the Yen was the strongest and drove the USD/JPY pair lower to pre-G20 levels near107.55 region while both the European currencies, the Euro and the Pound, attempted a tepid recovery but lacked follow-through ahead of the Services PMI reports.

Markets brace for a busy event calendar this Wednesday, as a raft of Services PMI reports from both sides of Atlantic are slated for released amid other key macro releases.

The European session will see the Euro area Markit Services PMI numbers, the focus on the German and UK PMIs due at 07:55 GMT and 08:30 GMT respectively.

Ahead of the US open, the US ADP Employment Change report, due at 1:215 GMT will grab some attention, soon followed by the US Trade Balance, Jobless Claims and The Canadian Trade Report at 12:30 GMT. Meanwhile, the US Markit and ISM Services PMI data will drop in around 14:00 GMT alongside the Factory Orders release. Also, in focus remains the US EIA Crude Oil Stocks data due for release at 14:30 GMT.

Apart from the economic releases, the market sentiment will be also influenced by the renewed US-China trade worries and ongoing global economic growth concerns while the UK/EU political headlines will also garner some attention.

Oil is currently trading close to $56.40, between a range of 56.17 and 56.56, falling from the $60 handle overnight despite the extended OPEC-led production cuts. As widely anticipated, OPEC agreed to extend the supply curtailment agreement by 9 months, but markets sold the fact after an initial spike higher.

Gold bulls run out of steam near $1,440, despite US-EU trade tension and broad weakness in the global data continues to offer support to the yellow metal. Following the absence of fresh directions concerning the US-China trade ceasefire, that was questioning the market optimism, the latest trade rift between the US and the EU renewed global trade tension.