Overview: The recent rise in equity markets and backing up in yields spurred many observers to upgrade their macroeconomic outlooks rather than the other way around. Yet, we continue to see many worrisome signs. It is not just trade, though, of course, that is part of it. Sentiment itself is fragile and will likely follow prices. Led by Hong Kong, where the confrontation is intensifying, and the Hang Seng's 1.8% drop, regional markets tumbled. The MSCI Asia Pacific Index fell for the third time in four sessions. In Europe, shares are also moving lower. The