Market wrap: US proposed tariffs on $200bn of Chinese imports to 25% from 10% - TDS

Analysts at TD Securities explained that Wednesday's FOMC meeting was overshadowed by resurfaced trade risks.

Key Quotes:

"Shortly after pledging to restart US/China trade talks, the US announced it may raise proposed tariffs on $200bn of Chinese imports to 25% from 10%."

"Market sentiment took a hit with Canadian equities down 0.4% while the S&P 500 rallied into the close to end the session down 0.1%. Rates bear-steepened with 2s10s widening by 4bps in Canada while Treasuries outperformed."

"Antipodeans (NZD: -0.4%, AUD: -0.3%) were weighed down against the USD by trade tensions while USDTRY (+1.6%) surged on new sanctions against Turkey. CAD (+0.1%) and MXN (+0.2%) saw modest gains on reported progress on NAFTA auto content rules."

"BoE and Banxico are the main risk events for Thursday."