Entering into US session, Sterling is trading as the weakest one for today as Brexit debate resumes in the Commons. Canadian Dollar follows as the second weakest. Though, Yen remains broadly pressured as the third weakest. On the other, New Zealand and Australian Dollar are the strongest ones for today but both lacks follow through buying.
There are talks that investors sentiments are boosted by positive development in US-China trade talks. But we’d like to reiterate that such optimism is not really reflected in stocks and bond markets. Both China and Hong Kong stocks closed lower. Japan JGB yield ended with a decline. German 10-year yield is also currently down. Is a 60-days extension in trade truce something good for the economy? Remember that the current tariffs will likely be in place in case of extension. Such an act is only prolonging the damages.
Anyway, it’s still positive that Japan and German avoided recessions in H4 even though the later’s GDP was stagnated. At least Germany was not in contraction back then. Eurozone GDP growth also matched expectation. Focus will now turn to US PPI, jobless claims and more importantly retail sales.
In Europe, currently:
- FTSE is up 0.43%.
- DAX is up 0.26%.
- CAC is up 0.66%.
- German 10-year yield is down -0.014 at 0.112.
Earlier in Asia;
- Nikkei dropped -0.02%.
- Hong Kong HSI dropped -0.23%.
- China Shanghai SSE dropped -0.05%.
- Singapore Strait Times rose 0.26%.
- Japan 10-year JGB yield dropped -0.0039 to -0.01, staying negative.
