Analysts at BNP Paribas, notes that the U.S. economy, especially in the manufacturing sector, has shown some signs of weakness recently, prompting the U.S. Federal Reserve to cut rates preventively.

• “The materialization of US “trade war” through tariffs increases on worth $300bn of imports is likely to weigh on firms' profitability, then activity.
• The inverted yields curve is a bearish signal. It could be followed by sizeable downward adjustments in highly leveraged sectors such as energy and IT.
• As a consequence, the monetary policy would continue to ease.”