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China’s latest liquidity injection is trying to stabilise risk markets into Tuesday, after stocks took another hit in Monday trade, with a lot of that weakness sourced to the Huawei fallout and more tension between the US and China. Meanwhile, movement in the FX market has been exceptionally subdued, despite Dollar demand. read report
The US Dollar is strong into the new week, though ultimately, there haven’t been any major changes to the outlook. The Pound has been hit the hardest of late, falling back on a breakdown in talks between the UK government and Labour opposition, and on the latest softer earnings component in the UK jobs report from the other week. read report
Global markets continue to keep a close on eye on updates relating to US-China trade as the week gets set to close out. Stocks have come back under some pressure on Friday, with many worrying about reports China may not be interested in continuing trade negotiations with the US. read report
As we head into the latter half of the week, currencies are trading mixed against the US Dollar, with the flight to safety correlated Swiss Franc and Yen up against the Buck, while the rest are lower. read report
Global sentiment was trying to make a turnaroud back to the topside into Wednesday, in reaction to a softer, more encouraging round of White House rhetoric on trade with China. However, today’s softer China retail sales and industrial production prints are reminding investors about other downside risks. read report
There’s been some relief to risk markets on Tuesday, after we had seen another intense round of risk liquidation in Monday trade, on the back of escalated tension between the US and China. The market is feeling better about the President’s latest words, in which he has said he looks forward to talks at the G20 meeting. read report
The big story in global financial markets has been the break down in talks between the US and China. The Trump administration has communicated to China it has a month to secure a trade deal, or face tariffs on all exports to the US, while Treasury Secretary Mnuchin has added no follow-up trade talks are scheduled. read report
We come into Friday with the Yen standing out as the big winner on the week in the more actively traded currency space, while the Pound stands out as the underperformer in the group. Yen strength has been attributed to setbacks in US-China trade talks and the resulting broad based liquidation in risk assets. UK and US data ahead. read report
The big theme of the week thus far has been setbacks in trade talks between the US and China and this is a theme that continues to drag sentiment as we head into Thursday. President Trump has tempered fears a bit after saying a trade deal with China would still work out, though investors aren’t exactly ready to run back into risk on these words. read report
Markets are still jittery about the outlook for global trade after President Trump expressed his intense dissatisfaction with progress ahead of the weekly open. The New Zealand Dollar has been getting a lot of attention on Wednesday after the RBNZ went ahead and cut rates 25 basis points. read report
