[MARKET UPDATE]: Euro tumbles while Franc and global fixed income markets rally as yields give back recent gains

The moves have extended in recent trade following the initial hawkish reaction to the ISM Manufacturing PMI. There has been no clear fresh catalyst behind the recent price action, which has seen global fixed income rally, CHF strengthen and EUR weaken. However, concerns around a potential refined-product crunch in Europe remain in focus amid ongoing discussions in the US over measures to keep diesel within the country. Overnight reports also suggested China has suspended refined-product exports, aside from to Hong Kong and Macau, while European officials are reportedly set to meet on Friday to discuss potential diesel stock releases. It is also the first session of Q4, so quarter-end/start-of-quarter positioning may be contributing, potentially including some unwinding of the sharp rise in global bond yields seen during Q3.