'We were heavily underweight (on sterling) but we have now eased that to a neutral stance.' – Lombard Odier (based on Business Recorder)

Pair's Outlook

The GBP/USD currency pair resumed trade in its consolidation trend on Monday, climbing back above the 1.25 handle. Since the Sterling keeps gravitating towards the 1.25 mark, a bearish development today would not be a surprise. However, the 20-day SMA kept providing the Cable with rather strong support lately, and with the help of the weekly PP, could spark more GBP-buying. Fundamental data might also provide a boost, providing the Pound with the opportunity to reach the 1.26 major level, with the weekly R1 being the closest resistance there. Technical studies, on the other hand, are unable to confirm either scenario.

Traders' Sentiment

Both bullish market sentiment and the share of sell orders slid 1% point over the day, now taking up 61% and 54% of the market, respectively.

'The news [Michael Flynn's resignation] weighed on the dollar against the yen because it's a hard situation to understand, and also to understand what kind of broader fallout it will have.' – Sony Financial Holdings (based on Reuters)

Pair's Outlook

Despite all odds, the USD/JPY currency pair inched higher on Monday, breaching our bearish trend-line. An adjustment is not yet required, as a negative outcome today would still reinstate it. The 20-day SMA is the nearest support, but more attention should be paid to the weekly pivot point, which is located at 112.89. Moreover, the Buck is likely to experience trouble with further gains, as a number of strong resistance areas rests up to the 115.50 level. A successful surge beyond this mark would open the door for reaching the main target, namely the longer-term trend-line, which currently lies on top of the 118.00 level.

Traders' Sentiment

There are 55% of traders with a positive outlook towards the US Dollar today (previously 58%). Meanwhile, the portion of purchase orders remains unchanged at 56%.

'I would not expect to see much volatility, don't think anyone is really confident enough to put on any sort of directional trades at the moment until they hear from Yellen.' – Daniel Hynes, ANZ (based on Reuters)

Pair's Outlook

The yellow metal was in a rebound on Tuesday morning, as it had found support during the late hours of Monday's trading session near the 1,220 level. The move was expected, and occurred exactly as forecasted. However, the future movements of the bullion is rather unclear due to a fundamental factor, as chairwoman of the Fed, Janet Yellen, is set to speak in the second half of Tuesday's trading session. Her comments are likely to drive the bullion's prices, as she comments on US monetary policy.

Traders' Sentiment

Traders remain long, as 54% of traders open positions are long. Meanwhile, 56% of trader set up orders are to buy the metal.

EUR/USD

Current level - 10618

The bias remains bearish and only a break through the crucial 1.0658 high will signal a reversal of the whole slide from 1.0828

Profit-taking affects gold curbing silver and platinum

USD/JPY

Current level - 113.38

My outlook here is still positive, for a violation of 114.10, towards 115.65. Key support lies at 112.50.

GBP/USD

Current level - 1.2542

The rise from 1.2440 low is corrective, preceding a slide towards 1.2415 support area. Trigger on the downside is 1.2479 low.

GBP/USD has made five waves up from January low which we see it as an impulsive wave up in wave 1-circled, followed by a recent three wave move that we see it as a flat in wave 2-circled, now completed. That said, cable can see more gains straight up from here and to a new high in a very strong impulsive manner if we consider that wave three of three can be around the corner.

GBPUSD, 4H

Is 20 your lucky number?

After the Dow Jones Industrial Average spent almost two months making headlines before triggering the 20K benchmark, a new headline hit the wires yesterday with S&P 500 breaching the $20 trillion market cap. In numerology, the number 20 points to constant changes and rising ambitions. For German theologian and mystic, Jacob Boehme, described the number 20 as “belonging to the Devil”,however, for an investor, this number represented more than 9% in returns on U.S. equities since the U.S. elections.

Same factors that pushed U.S. stocks since November 9 are again providing momentum after President Trump promised last week a phenomenal tax plan to be announced soon, but the greenback ignored the equities rally as all market participants will keep an eye on Yellen's speech later today when she testifies before congress.

The sideway price action in the U.S. dollar for the past three trading days suggests two things, either markets believe that Yellen won't reveal any new hints, or they're waiting for a sign to react upon. If she does indicate that the U.K.is ready to act as soon as March, we may see a decent rally in U.S. yields that's going to support the U.S. dollar andprobably limit any potential gains in equities.

Micheal Flynn resigns

Michael Flynn, the U.S. national security adviser sudden resignation late yesterday also seems to be impacting financial markets. The dollar declined slightly after the news broke out and Asian equities gave up on earlier gains. Market's don't want another source of uncertainty and the big question now is whether Trump's Russian scandal ends here or it's just the first domino to fall.

Inflation on the rise

On the data front, China's producer prices rose more than expected by 6.9% in January to hit its highest levels since August 2011, meanwhile consumer prices also grew at the fastest pace in about 3 years hitting 2.5%. The rise in food prices, energy, and raw materials is spreading across the world, and this will raise many concerns on how longer will major central banks deny the fact that inflation is back.

Germany which also saw inflation on the rise hitting 1.9% in January, reported its second GDP reading which confirmed that the economy grew at its fastest pace since 2011 at a rate of 1.9%, however, the unadjusted data came 0.5% below markets' forecast at 1.2%.

Sunrise Market Commentary

• Rates: Yellen slightly supportive for US Treasuries?
  Yellen's testimony for the US Senate is probably her final possibility to “pre-announce” tightening in March. We expect her to keep her lips sealed. Odds of a March rate hike are 30% and could suffer a blow, supporting US Treasuries short term, even if she holds on to the Fed's scenario of 3 rate hikes in 2017. 125-09/16 remains strong resistance for the Note future.
• Currencies: Dollar rally slows ahead of Yellen testimony
  Yesterday, the dollar gained slightly ground as the global equity rally continued. This morning, the risk-on sentiment eases after the resignation of Trump's security adviser. There are plenty of eco data, but USD traders will await Yellen's testimony before Congress. A balanced message might be slightly USD negative. Sterling traders will keep an eye on the UK CPI data.

The Sunrise Headlines

• Main US equity indices ended around 0.5% higher yesterday. Overnight, Asian risk sentiment deteriorated with indices recording modest losses (Japan underperforming) following the latest lapse of the Trump administration.
• Mike Flynn, President Donald Trump's national security adviser, resigned as he was under increasing fire over his conflicting statements about his contacts with Russian officials before the inauguration, the White House said.
• China's PPI picked up more than expected in January to near six-year highs (6.9% Y/Y) as prices of steel and other raw materials extended a torrid rally. China's CPI nears a three-year high (2.5% Y/Y) as fuel and food prices jumped.
• Dallas Fed Kaplan, voting FOMC member, said the US central bank should act soon to raise rates, or risk having to abandon its plan to do so slowly. Kaplan did not say when he hopes the next interest rate rise will be.
• US drillers have been bringing oil rigs back online in response to stabilising crude prices and the EIA now estimates that US crude production will climb by 80,000 barrels a day next month. Brent crude dropped back below $56/barrel.
• Matteo Renzi has triggered a leadership contest in his ruling centre-left Democratic party, opening up a tussle that he hopes to use as a springboard for a comeback at Italy's next general election.
• A US federal judge rejected a Justice Department request to suspend Seattle courtroom proceedings over President Trump's temporary ban on travel from seven Muslim-majority countries until an appeals court has fully reviewed it.
• Today's eco calendar heats up with UK CPI, EMU production, German ZEW and US NFIB small business optimism. Fed chairwoman Yellen testifies before the Senate while governors Lacker, Kaplan and Lockhaert speak as well.

Currencies: Dollar Rally Slows Ahead Of Yellen Testimony

Dollar rally slows ahead of Yellen testimony

On Monday, the dollar profited from the ongoing equity rally. However, the rise in core bond yields and in the dollar remained limited, as investors awaited today's testimony of Fed's Yellen before Congress. USD/JPY closed the session at 113.74 (from Friday's close of 113.22). EUR/USD finished the session at 1.0598 (from 1.0643).

Overnight, global risk sentiment deteriorated as the security adviser of US president Trump was forced to leave on allegations of improper contacts with Russian diplomats. The ‘Flynn issue' provides a good excuse to take profit on the recent equity and dollar rally. Asian equities show minimal losses, but Japan underperforms on yen strength. USD/JPY is trading in the 113.35 area. The China PPI was above consensus but had little impact on the markets. Dollar softness is lifting EUR/USD (1.0620) off the overnight low. The Aussie dollar profits from strong business confidence.

Today, in EMU the Q4 GDP (expected unchanged) and December industrial production (expected weak) probably won't have much impact on FX trading. The German February ZEW confidence is more timely. The market expects a small decline (15 from 16.6), but the recent good stock market performance suggests a potentially good outcome. In the US, the NFIB small business sentiment is expected to have declined slightly, following a leap upwards after the Trump election. With the index at a historic high level, the decline may be a bigger than expected, but shouldn't be a great concern. The January PPI is expected to have eased to 1.5% Y/Y from 1.6% Y/Y. Core PPI is expected to have dropped to 1.1% Y/Y from 1.6% Y/Y in December. If anything, the global data point to a slightly softer dollar, especially if global sentiment would turn further risk-off. However, the focus will be on the Yellen testimony. For an in depth analyses see the fixed income part of this report. The Fed chair will keep a balanced approach, but confirm that the Fed is nearing its targets. However, she will probably refrain from hinting to a march rate hike. The dollar started the week in good shape. A less positive risk sentiment and Yellen abstaining from hints on a March rate hike might (temporary) block the most recent USD rebound. USD/JPY is more vulnerable to negative headlines/soft Yellen speak than USD/EUR.

Global context: The dollar is/was in a corrective downtrend since the start of January as the Trump reflation trade petered out. Interest rate differentials in favour of the dollar narrowed. Trump's communication became a source of uncertainty, also for the dollar. At some point, absolute interest rate support should provide a USD floor, especially as the Fed is expected to continue its policy normalisation. Last week, the dollar showed tentative signs of a bottoming out process, supported by the ‘Trump tax promise'. Price action earlier last week showed that euro weakness might become a factor too. As we see the 1.0874 as solid resistance, a sell EUR/USD on upticks approach might be considered. The downside test of USD/JPY is also rejected. USD/JPY 111.16 (38% retracement of the 99.02/118.66 rally) remains key support. For now, the USD/JPY rebound doesn't convince us.

EUR/USD: Topside test rejected. Dollar succeeds a cautious/gradual comeback

EUR/GBP

UK CPI nearing the 2.0% mark

On Monday, EU's Juncker repeated calls for EU unity going into the start of the Brexit negotiations, but without impact on sterling. EUR/GBP initially held a tight range around the 0.85 pivot. Later in the session, the decline of EUR/USD also weighed (slightly) on EUR/GBP. The pair closed the session at 0.8461 (from 0.8513) nearing the 0.8450 support. The positive risk sentiment was also slightly supportive for Cable that closed the session at 1.2526 (from 1.2491).

This morning, the Flynn risk-off correction is slightly negative for sterling. The global context (Yellen speech) will be important for sterling trading. Even so, the focus will be in the UK price data. The input PPI already showed a substantial rise in pipeline inflation and this is expected to continue (from 15.8% Y/Y to 18.5 Y/Y). CPI is expected to decline 0.5% M/M but due to base affects this will still push Y/Y inflation to 1.9% (from 1.5% Y/Y in December). Core inflation is expected at 1.7% Y/Y from 1.6% Y/Y. Of late, the pass-through of higher PPI inflation into CPI inflation was modest. BoE governor Carney isn't in a hurry to take a tough stance on inflation. So, data in line with the consensus probably won't support further sterling gains. CPI jumping above 2.0% might be a short-term sterling positive. Overall euro softness also remains a downside risk for EUR/GBP. We look how the test of the key 0.8540 support turns out. In case of a break, the 0.8304 area is the next MT support. At least partially stop-loss protection on EUR/GBP longs may be considered.

EUR/GBP testing the 0.8450 support ahead of the UK inflation data

Download entire Sunrise Market Commentary

In the US, the main event will be Fed Chair Yellen's semi-annual Humphrey-Hawkins testimony on monetary policy before the Senate Committee on Banking, Housing, and Urban Affairs. She will present the same testimony before the House Committee on Financial Services tomorrow. Although the testimony will be the same on both occasions, we expect market participants to pay extra attention to the Q&A sessions. In particular they may be on the lookout for any fresh hints regarding her view on the economy, and whether she is likely to vote in favor of a rate hike in the upcoming policy meetings. The Fed Chair was relatively upbeat in her latest speech, indicating that the US is near maximum employment and that inflation is moving toward the Fed's goal. She also said that the timing of the next rate hike will depend on the economy over the coming months. Given that since then, US data have been generally strong if one overlooks the disappointing wage growth print in January, we do not see a material reason for Yellen to deviate from her previously optimistic stance. Overall confident remarks from the Fed chief with regards to the economy and the Fed's progress towards its dual mandate could cause the probability for a March hike to surge, and may thereby bring USD under renewed buying interest. Currently, that probability is almost 18% according to the Fed funds futures.

EUR/USD traded lower on Monday after it tested as a resistance the prior upside support line taken from the low of the 16th of January. However, the slide was stopped by the 1.0590 (S1) support level, marked by the low of the 19th of January. The pair has been trading within a short-term downside channel since the 2nd of February and as such we maintain the view that the near-term bias is negative. A clear dip below 1.0590 (S1) would confirm a forthcoming lower low on the 4-hour chart and is possible to open the way for our next support of 1.0540 (S2).

Overnight: China's inflation data amplify the global reflation theme

China's CPI and PPI data for January showed that inflationary pressures continue to accelerate in the world's second largest economy, adding to the global reflation theme that has driven market action in recent weeks. Both the CPI and the PPI rates rose by more than forecast. The main beneficiary from these news was the Australian dollar, which rose somewhat against its counterparts on the news and continued even higher in the following hours. With regards to the PBoC, the Bank has been tightening its policy in recent weeks in order to halt some of the depreciation pressure on the yuan. As such, we think that accelerating inflation gives the Bank more room to tighten its policy even further in the foreseeable future, if needed.

What's more, the persistent surge in the PPI rate is likely to be welcomed by foreign central banks struggling to hit their inflation targets, such as the ECB and BoJ. Considering that falling Chinese producer prices between 2012 and 2016 may have held down imported inflation in the Eurozone and Japan, the turnaround in that dynamic may actually boost imported inflation in those nations and thereby, support their overall inflation prints.

Therefore, we believe that the consistent increase in China's PPI rate could diminish somewhat the likelihood for any further aggressive easing measures by the likes of the ECB and the BoJ, and may thereby ease some of the recent depreciation on the euro and the yen. Having said that though, the near-term outlook for both currencies is still cautiously negative in our view, bearing in mind Eurozone's political risks and the BoJ's yield-control framework amid an environment of rising global yields.

Today's highlights:

During the European day, we get CPI data for January from the UK. The consensus is for both the headline and the core CPI rates to have risen further. Even though further surge in these rates may support the pound at the release, we do not expect such an increase to materially affect the BoE's neutral policy stance, at least in the short-term. After all, at the press conference following the latest BoE meeting, Governor Carney made it clear that on the whole, the MPC remains willing to "look through" above-target inflation, and that investors should not expect rate hikes anytime soon.

EUR/GBP slid yesterday, falling below the support now turned into resistance of 0.8490 (R1) and the neckline of a head and shoulders pattern which started to form since the 22nd of December. This keeps the short-term bias negative and as such, we would expect a dip below 0.8450 (S1) to set the stage for extensions towards our next support of 0.8380 (S2). Accelerating UK inflation today could prove the catalyst for such a slide. As for the bigger picture, the rate continues to trade above the long-term uptrend line taken from the lows of November 2015. As such, we would like to see a decisive close below that line before we get confident on larger bearish extensions.

In Germany, the ZEW survey for February is due out. The forecast is for the expectations index to decline, but for the current conditions figure to tick up. On balance, we think that deteriorating expectations are likely to overshadow improving current conditions. Even though this survey is usually not a major market mover for the common currency, this could cause the German DAX to correct a bit lower. We also get the nation's GDP data for Q4 and the final CPI figures for January. From Eurozone, we get the 2nd estimate of Q4 GDP and industrial production data for December.

As for the US economic data, we get the NFIB small business optimism index and the PPI, both for January. Nonetheless, considering that investors will likely have their gaze locked on Yellen, these indicators may pass unnoticed.

Besides Chair Yellen, we have two more FOMC members scheduled to speak today: Dallas Fed President Robert Kaplan and Atlanta Fed President Dennis Lockhart.

Market movers today

The main event today will be Fed Chairman Janet Yellen's semi-annual testimony before the Senate Banking Committee. Focus will be on any hints regarding the timing of the next hike. We look for a June hike but the risk is still skewed towards an earlier hike. The Fed's Robert Kaplan (voter, dove) yesterday said that ‘it is my view that moving sooner rather than later will make it more likely that future removals of accommodation can be done gradually'.

German GDP is due to be released this morning. We look for a stronger-than-consensus rise of 0.7% q/q (consensus 0.5% q/q). It also points to upside risk to consensus of 0.5% q/q for euro area GDP. Strong surveys suggest that euro area growth finished 2016 on a strong note. German ZEW was strong in January but we look for a small decline in February in line with the recent drop in the German ifo expectations index.

In the US, it is time for NFIB small business optimism, which rose sharply last month – most likely due to upbeat expectations about deregulation and tax cuts. We might see a small setback as there are not yet any details on the tax plan. US producer prices are also up today.

Nothing in Scandi today.

Selected market news

Stock markets finished higher again yesterday but Asian markets are a bit lower after news that the national security adviser Michael Flynn resigned due to contacts with Russia earlier, see Reuters. The USD has weakened slightly on the news.

Treasury Secretary Steven Mnuchin was sworn in yesterday, paving the way for an announcement soon on tax reform. Not least, news on a corporate tax cut is much awaited by markets.

Chinese inflation numbers surprised strongly on the upside as producer prices (PPI) rose to a new cycle high of 6.9% y/y (consensus 6.5% y/y, previous 5.5% y/y). CPI inflation was also higher than expected at 2.5% y/y (consensus 2.4% y/y, previous 2.1% y/y) driven by an increase in the core inflation (excludes food) which moved up to 2.5% y/y from 2.0% y/y. It's still below the 3% target but has a clear trend upwards. Today's numbers increase the likelihood of further tightening from the PBoC as economic data also looks robust currently. An increase in the official lending rate can no longer be ruled out. So far, the PBoC has tightened mainly through a small lift to repo rates in money markets and ordering banks to restrain lending in Q1. But official policy rates have not been touched.

The Chinese numbers add to the global reflation case. In addition, a more moderate Trump on the foreign political scene has also dampened the risk of a trade war for now and triggered further increases in commodity prices, adding more fuel to reflation.

China inflation rises to new multi-month highs

Asia Mid-Session Market Update: China inflation rises to new multi-month highs; Risk trade dented by NSA Flynn resignation

US Session Highlights

(US) NY Fed Jan Survey of Consumer Expectations: inflation expectations highest since summer 2015; household spending expectations lowest since Jan 2016 - OPEC Sec Gen Barkindo: prelim numbers show a very high level of compliance with supply cut agreement - press

(US) Pres Trump: US will be seeking to “tweak” the terms of its trade relationship with Canada.

US markets on close: Dow +0.7%, S&P500 +0.5%, Nasdaq +0.5%

Best Sector in S&P500: Financials

Worst Sector in S&P500: Telecom

Biggest gainers: GT +5.9%, REGN +4.4%, NUE +4.3%, CCI +3.0%, STX +2.9%

Biggest losers: NVDA -4.6%, ATVI -3.2%, GPS -3.0%, EQT -2.8%, EXPE -2.6%

At the close: VIX 11.1 (+0.2pts); Treasuries: 2-yr 1.21% (flat), 10-yr 2.43% (+3bps), 30-yr 3.03% (+2bps)

US movers afterhours

GUID: Reports Q4 $0.09 v $0.06e, R$29.5M v $28.7Me; Guides initial FY17 $0.28-0.36 to $ v $0.29e, R$112-118M v $115Me; +3.9% afterhours

CSOD: Reports Q4 $0.00 v -$0.03e, R$109.9M v $109Me; Guides Q1 R$109-111M v $112Me; +3.9% afterhours

BKD: Reports Q4 -$1.45 (unclear if comp) v $0.47e, R$1.21B v $1.22Be (2 est); -5.3% afterhours

HIBB: Guides Q4 $0.53-0.55 v $0.68e, R$247M v $255Me; SSS - 2.2%; -5.4% afterhours

AMKR: Reports Q4 $0.42 v $0.27e, R$1.02B v $1.03Be (1 est)- Guides Q1 -$0.11 to 0.05 v $0.11e, R$860-940M v $970Me, gross margin 13-17%; -10.9% afterhours

Politics

(US) President Trump's National Security Adviser Michael Flynn resigned; Keith Kellogg is now acting National Security Adviser - financial press

(US) Federal judge in Virginia also rules against upholding President Trump's executive order on immigration - press

(US) Steven Mnuchin confirmed by US Senate as the next US Treasury Secretary in 53-47 vote

Asia Key economic data:

(CN) CHINA JAN CPI M/M: 1.0% (11-month high) V 0.2% PRIOR; Y/Y: 2.5% (32-month high) V 2.4%E

(CN) CHINA JAN PPI Y/Y: 6.9% V 6.5%E (5th straight increase and highest since Aug 2011)

(JP) JAPAN DEC FINAL INDUSTRIAL PRODUCTION M/M: 0.7% V 0.5% PRELIM; Y/Y: 3.2% V 3.0% PRELIM

(AU) AUSTRALIA JAN NAB BUSINESS CONFIDENCE: 10 (19-month high) V 6 PRIOR; CONDITIONS: 16 (9-year high) V 10 PRIOR

(NZ) New Zealand Jan Food Prices M/M: +2.8% v -0.8% prior (First rise in 5 months)

(NZ) New Zealand Jan REINZ median home price y/y: +9.4% v +11% prior; Home sales y/y: -14.7% v -10.7% prior

Asia Session Notable Observations, Speakers and Press

'Re-flation Trump trade' sent US equities to record highs on Monday, but risk is on the back foot in the latter part of the Asia session. After days of DOJ investigations, National Security Advisor Michael Flynn has submitted his resignation after acknowledging he gave 'incomplete information regarding phone calls with the Russian ambassador' about US sanctions prior to inauguration, potentially sending the US administration into damage control mode. White House press Sec Spicer will hold a press conference on Tuesday and may be faced with questions about the timing when the cabinet became aware of compromising intel on Flynn, particularly in light of Pres Trump stating Flynn had his confidence as recently as Monday. S&P futures are down slightly, Gold is up $5 from the lows above $1,330, and USD/JPY is off by 40pips below 113.30.

China released its January CPI and PPI numbers that topped expectations while hitting multi-year highs. PPI remained especially notable as it rose for the 4th month and reached the highs not seen since 2011. CPI increase was more heavily skewed to food inflation (2.7% v 2.4% prior) as non-food component slowed to 0.7% v 2.0% prior. China Stats Bureau noted the CPI was skewed by the Lunar New Year effect, since it came in January this year as opposed to February of last year. Also of note in China, US financial press report indicating US Commerce Sec may not choose to name the country a currency manipulator, but rather designate the practice of currency manipulation as an unfair subsidy when employed by any state.

AUD benefited from strong NAB Business Conditions reaching multi-year highs. NAB economist noted the employment index improvement was expecially notable since it had previously 'stubbornly muted'. Comments from UBS economist said the NAB data puts RBA into 'rate hike territory'.

Toshiba remains in focus on Japan. After confirming several recent press reports estimating rougly ¥700B charge related to Westinghouse writedown, the company has once again postponed its earnings release as it continues to work with its auditor on the review. A Nikkei report earlier today also noted the company may not be able to continue as a 'going concern', potentially requiring bankruptcy proceedings and/or state bailout.

China:

(CN) US said to consider new currency strategy to pressure China from undervaluing currency to boost exports - financial press

(CN) China NBS: Jan CPI boosted due to Lunar New Year factors

(CN) China National Development Reform Commission (NDRC): Expect to invest more than CNY800B in railway improvements in 2017 v CNY801.5B in 2016 - Chinese press

Japan:

(JP) BOJ Gov Kuroda: Will not alter monetary policy just because global yields are rising

(JP) Japan Fin Min Aso: PM Abe has proposed an economic dialogue to US president Trump - press

Australia/New Zealand:

(AU) UBS economist: Latest NAB Business confidence data suggests conditions have moved into 'rate hike territory' - AFR

(NZ) Westpac: New Zealand housing prices showed marked slowdown in Jan - press

(NZ) New Zealand Jan REINZ median home price y/y: +9.4% v +11% prior; Home sales y/y: -14.7% v -10.7% prior

Asian Equity Indices/Futures (00:00ET)

Nikkei -0.6%, Hang Seng flat, Shanghai Composite -0.2%, ASX200 -0.1%, Kospi -0.3%

Equity Futures: S&P500 -0.1%; Nasdaq -0.1%; Dax -0.1%; FTSE100 -0.1%

FX ranges/Commodities/Fixed Income (00:00ET)

EUR 1.0590-1.0625; JPY 113.25-113.80; AUD 0.7635-0.7690; NZD 0.7165-0.7195

Apr Gold +0.3% at $1,230/oz; Mar Crude Oil +0.3% at $53.06/brl; Mar Copper +0.3% at $2.79/lb

SPDR Gold Trust ETF daily holdings rise 4.2 tonnes to 840.9 tonnes; 8th consecutive increase; Highest since Dec 15th

(CN) PBOC SETS YUAN MID POINT AT 6.8806 V 6.8898 PRIOR

(CN) PBOC to inject combined CNY130B v CNY100B on Feb 2nd in 7-day, 14-day and 28-day reverse repos

(JP) Japan MoF sells ¥2.17T in 0.1% 5-year JGB bonds; avg yield -0.089% v -0.116% prior; bid-to-cover 4.26x v 3.66x prior

(AU) Australia MoF (AOFM) sells A$150M in 1.25% 2022 Bonds; avg yield: 4785%; bid-to-cover: 4.83x

Asia equities/Notables/movers by sector

Consumer discretionary: 1958.HK BAIC Motor Corp Ltd +2.0% (guidance); 3389.HK Hengdeli Holdings +1.0% (guidance); TWE.AU Treasury Wine -4.7% (H1 result); DMP.AU Domino ’ s Pizza +2.5% ; COH.AU Cochlear -3.7% (H1 result); NCK.AU Nick Scali +10.4% (H1 result); JBH.AU JB Hi-Fi -3.1%
(Credit Suisse cuts rating); 7936.JP Asics Corp -10.3%, 6098.JP Recruit Holdings +1.4% (9-month result); 9041.JP Kintetsu Corp -1.2%, 2501.JP Sapporo Holdings -6.0% (9-month result); 2587.JP Suntory Beverage & Food -2.9%, 2503.JP Kirin Holdings Co -3.5% (FY16/17 result)

Financials: 1109.HK China Resources Land +1.2% (Jan result); CGF.AU Challenger Financial Services Group -2.4% (H1 result); OCBC.SG Oversea-Chinese Banking Corp -3.4% (Q4 result); NOBL.SG Noble Group +9.1% (potential strategic investment)

Industrials: RIC.AU Ridley Corp -3.3% (H1 result); AZJ.AU Aurizon Holdings -3.4% (Macquarie cuts rating); 6479.JP Minebea +17.2% (9-month result)

Technology: 7731.JP Nikon Corp -13.9% (9-month result); 6728.JP Ulvac Inc +17.3% (Nomura raises rating); 6773.JP Pioneer Corp -6.6% (9-month result); 6502.JP Toshiba Corporation

7.8% (May issue first-ever risk warning; May delay earnings, in disagreement with auditors)

Materials: 1090.HK DaMing International Holdings +3.2% (guidance); 5706.JP Mitsui Mining & Smelting +13.4% (9-month result); 486.HK RUSAL -4.4% (Onexim sold stake)