Growing trade concerns were a drag on equities. But this influence was offset by positive earnings and improved US economic data. Overall, equities recovered from their earlier losses, while eurozone sovereign bonds reversed some of their first-quarter gains. The euro was weak, as the European Central Bank (ECB) was much more dovish in its policy guidance than had been expected. This meant that equity gains were stronger in euro terms. Despite lower German yields, eurozone sovereign bonds declined because peripheral (particularly Italian) spreads rose.