Falling yields (except at the very short end) and a flattening yield curve can be observed in the euro area as well. However, while the euro has been generally stable against the currencies of major trading partners, the US dollar has strengthened. Meanwhile, the equity market volatility index, which has ebbed since the start of 2019, is picking up again somewhat following the new tariff measures introduced by the United States and China in May 2019. Capital markets in Emerging Asia - Stable but headwinds persist10 (cont.)