FX News Today
- Stocks in Asia traded mixed, amid lingering concerns over US-Sino trade relations and doubt whether the talks will bring sufficient progress to prevent another round of punitive tariffs.
- Chinese equities rallied after returning from last week’s holiday, with small caps and stocks in the tech hub of Shenzhen rallying. The Hang Seng was up 0.46% as of 6:30GMT the CSI 300 up 1.62% and Shanghai and Shenzen Comp climbed 1.18% and 2.58% respectively.
- Japanese markets were closed for a holiday, so Treasury futures won’t trade either until Europe opens.
- Elsewhere in Asia bonds traded mixed with Australia outperforming as the ASX underperformed and dropped -0.17%.
- Chinese Vice Premier Liu He will meet Treasury Secretary Mnuchin and Trade Representative Lightizer in Beijing for high level talks this week.
- Meanwhile the government in Washington may be heading for another shutdown, which is adding to caution in wider markets.
- US futures are slightly in the red, while European futures moved slightly higher. The front end WTI future is trading at USD 52.22 per barrel.
Charts of the Day
Main Macro Events Today
- Swiss CPI – The inflation rate in Switzerland is expected to have stood at 0.6% y/y in January, down from 0.7% y/y in December.
- UK GDP and Production Data – UK GDP is expected to have stood at 1.4% y/y in the final quarter of 2018, compared to 1.5% y/y growth in Q3. Manufacturing production is expected to have declined by 0.7% y/y, compared to a decline of 1.1% y/y in November. Industrial Production is expected to have increased by 0.2% m/m, compared to a decline of 0.4% in November.
- US Unit Labour Cost – US Unit Labour Cost growth are expected to have stood at 1.7% in 2018Q4, compared to 0.9% in the third quarter.
Support and Resistance
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Dr Nektarios Michail
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