Global growth worries and an intensifying trade war between the world’s two largest economies sparked a stampede into perceived ‘safe-haven’ assets on Monday.
Gold prices jumped more than 1% to hit their highest level in over six years on Monday, while the Japanese yen and core government bonds also rallied.
It comes at a time of heightened volatility in financial markets, with the pan-European Stoxx 600 falling almost 2%. That’s on top of the 2.5% it lost on Friday — its worst day so far in 2019.
The panic is seen spreading across to Wall Street too, with the Dow Jones Industrial Average expected to fall more than 380 points lower at the open.
Meanwhile, China let the yuan breach the key 7-per-dollar level for the first time in more than a decade on Monday. It appeared to indicate Beijing would be prepared to tolerate more currency weakness that could further exacerbate the trade conflict with Washington.