Newsquawk

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  • Asian equity markets began the week with a cautious tone following last Friday’s lacklustre close on Wall St and amid continued Brexit uncertainty
  • Parliament vote on the Brexit deal was postponed on Saturday after lawmakers voted (322-306) in favour of passing the Letwin amendment
  • PM Johnson stated that legislation will be tabled in the upcoming week and sent a letter to the EU requesting a Brexit extension which he did not sign
  • Looking ahead highlights include, German PPI, BoE’s Haldane, Fed’s...
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  • Major European Bourses are modestly lower, France’s CAC underperforms as Renault cut outlook
  • Chinese economic growth slowed to the weakest pace since 1992, although Q/Q and YTD GDP figures matched analysts’ forecasts, while IP surpassed estimates
  • Outside experts reportedly warned President Trump that continued escalation of US-China trade tensions could hurt economy and re-election
  • Looking ahead, highlights US Baker Hughes rig count, Fed’s...
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  • Asian equity markets traded cautiously after the rally from the Brexit deal breakthrough petered out and as participants mulled over mixed Chinese data
  • Chinese economic growth slowed to the weakest pace since 1992, although Q/Q and YTD GDP figures matched analysts’ forecasts, while IP surpassed estimates
  • UK rebel Labour MPs were said to be considering backing PM Johnson's Brexit deal if workers' and other rights are written into UK law
  • Looking ahead, highlights US Baker Hughes rig count, Fed’s...
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  • EU and UK have reached a Brexit deal, sources indicate DUP against it; no word from DUP Leader Foster yet
  • Sterling is stronger with Cable reaching just shy of 1.30 at best; other G10 currencies are firmer vs. USD
  • There will be no discussions on further Turkey sanctions during the European Commission summit, according to a senior EU officials
  • Looking ahead highlights include, US Housing Permits & Starts, Philadelphia Fed, Industrial Production and EIA Weekly Stocks, EU Council Summit Begins,...
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  • Asian equity markets traded mixed after the lacklustre tone rolled over from Wall St where all majors finished with marginal losses
  • UK PM Johnson told the 1922 Committee that the UK will still leave deal or no deal on 31st October if a deal cannot be reached
  • EU sources stated that a level playing field, customs arrangements and NI consent all have been agreed in the EU/UK talks, although VAT provisions are not done yet
  • US President Trump suggested the Phase 1 of the US-China trade deal is moving...
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  • European bourses are mixed but little changed overall as sentiment remains choppy, FTSE underperforms on ongoing GBP strength
  • EU’s Barnier is optimistic a deal can be reached today, but EU sources state there is now not enough time to formally sign a deal at tomorrow’s summit; DUP remain the critical voice at present
  • In FX, a volatile session for GBP thus far with the remaining G10 currencies mixed vs. USD; debt complex is bid across the board
  • US House passed a bill aimed at supporting the Hong Kong...
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  • Asian equity markets traded higher after taking the impetus from the gains across global peers
  • A large split reportedly opened up among Tory Eurosceptics whether to back PM Johnson's Brexit plan with some in the ERG supporting it, whilst others spoke out against it
  • Reports are now talking about an effective deadline of 1300BST for a Brexit deal to be agreed in Brussels
  • China urged US lawmakers to stop interfering and threatened to retaliate with strong measures after the US House passed a bill aimed...
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  • European indices are firmer this morning, though sentiment has been impacted by US-China rhetoric
  • Reports indicate China will struggle to purchase USD 50bln of US agri products annually, unless retaliatory tariffs are removed
  • Mixed comments from EU’s Barnier stating that a Brexit deal is possible this week although sources note that the latest proposals are not enough
  • DXY is mixed vs. G10 peers, with GBP and JPY outperforming and the debt complex is firmer thus far
  • Looking ahead highlights...
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  • Asian equity markets traded mixed following the lacklustre lead from Wall St where the recent US-China trade optimism receded
  • US-China talks are to resume next week and the Phase 1 deal could be wrapped up in November according to Chinese press
  • Brexit deal hopes are reported to have increased as sources in both sides of the channel stated there was cautious optimism, according to the Telegraph
  • US President Trump is to authorise sanctions against Turkish officials, immediately stop negotiations with...
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  • Major European indices are subdued after Friday’s highs and following latest US-China rhetoric
  • China reportedly want further discussion before the signing of the Phase One deal with US President Trump
  • Brussels is demanding further Brexit concessions from UK which has prompted warnings that a deal based on additional compromise would be rejected by Parliament
  • In FX, GBP underperforms a somewhat mixed USD as Friday’s Brexit euphoria fizzles out ahead of Thursday’s summit
  • Looking ahead...
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  • Asian equity markets began the week on the front-foot as the region reacted to last week’s announcement of a US-China Phase 1 dea
  • The deal saw China agree to make between USD 40bln-50bln of agricultural purchases from the US and the US refrain from implementing the October 15th tariffs
  • Brussels is demanding further Brexit concessions from UK which has prompted warnings that a deal based on additional compromise would be rejected by Parliament
  • DXY slightly firmed as safe-havens recovered some of the...
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  • European bourses are firmer this morning as US-China flow has been light following yesterday’s positivity from US President Trump; is to meet China VP He at 19:45BST
  • EU’s Tusk says UK PM Johnson is yet to bring forward suitable proposals, have received positivity signals from the Irish PM
  • Reports that a Iranian tanker has been hit by missiles near a Saudi port, currently unclear as to where these originated from
  • Crude is buoyed on the tanker flow while Sterling is the notable G10 FX outperformer...
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  • US President Trump said US-China talks went very well today ahead of his meeting with Chinese Vice Premier Liu He at 14:45EDT/19:45BST
  • Asian equities took its cue from the rally on Wall Street, HK outperformed whilst Mainland remained cautious
  • UK Brexit negotiators are proposing a "pared-down" free trade agreement to end the Brexit impasse, Irish PM noted that he had good discussions about a future relationship after Brexit
  • DXY held onto losses, Cable kept a 1.24+ status, USD/JPY traded on either...
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  • European bourses are mixed/little changed overall, as focus remains firmly on US-China updates
  • SCMP reports that Chinese delegation is cutting their trip short due to a lack of progress
  • FBN’s Lawrence highlights that the China team have been debating leading early, may hinge on today’s talks
  • US is reportedly considering some concession on a currency pact, next week’s tariffs and Huawei
  • USD is softer vs. G10 peers, while the debt complex remains slightly firmer Stateside though the 10yr is...
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  • Asian equities traded with cautious gains in what was a volatile session amid a slew of contradicting trade headlines
  • SCMP reported that Chinese delegation is cutting the trade trip short amid no progress on trade issues
  • US is reportedly mulling some concessions regarding the currency pact, next week’s scheduled tariffs and Huawei but is to tighten inspections on parcels from China
  • FOMC Minutes stated a few members said markets see more accommodation in the future than they see as...
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  • Risk sentiment is buoyed on reports that China are open to a partial trade deal in-spite of the technology blacklist, subsequent reports indicate China offer to purchase USD 10bln of goods per year
  • Initial reports noted that the EU were prepared to make a significant concession on the Brexit deal; however, this has subsequently been rebuffed from every angle
  • Reports that Turkish troops had crossed the Syrian border, since clarified that this has not happened thought they are at the border
  • Debt...
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  • Asian stocks tracked losses on Wall Street but drifted off lows, South Korea was closed due to a public holiday
  • US imposed Visa bans against Chinese individuals related to abuse of China's Uighur community, China said the move interferes in China's internal affairs and undermines China's interests
  • US and Kurdish officials expect Turkey to launch an attack on Northeast Syria within the next 24 hours, Turkish attack appears coordinated with Russians according to sources
  • Fed Chair Powell said Fed is to...
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  • China is toning down exp. ahead of trade talks, delegation are planning to cut the visit short and Liu He has not been given the designation of Special Envoy., SCMP
  • China’s Commerce Ministry say to stay tuned for retaliation to the US naming 28 Co’s to be placed on their entity list
  • German Chancellor Merkel reportedly told PM Johnson that a deal can only occur if NI remains in the customs union, if this is the EU’s position than a UK source notes that a deal is essentially impossible at any...
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  • Asian equities traded higher across the board despite a lacklustre handover from Wall Street, HKEX dropped its bid for LSE and Samsung Electronics released its Q3 guidance
  • China is ready to do a deal on the parts of the negotiations both sides agree upon and are prepared to set out a timetable for the harder issues to be worked out next year, according to Fox
  • US Commerce Department confirmed it has blacklisted 28 Chinese firms over treatment of the Muslim Uighur community
  • In FX, DXY remained within...
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  • Major European indices are little changed as markets await further US-China updates
  • China is reportedly narrowing the scope for a trade deal with the US, officials expected to present an offer which omits industrial policy or subsidies
  • North Korea has terminated working talks with the US and US forces are to pull out of Northern Syria, and not stand in the way of Turkey’s long-standing plan
  • USD is firmer vs. G10 counterparts excluding safe havens
  • Looking ahead highlights include US Consumer...
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  • Asian equities traded mixed after initially opening higher, Mainland China and Hong Kong were closed
  • China is narrowing scope for a trade deal with the US ahead of principle-level talks in Washington this week, according to reports
  • North Korea has terminated working level nuclear talks with the US due to US’ “old viewpoints and attitude”, according to NK
  • UK PM Johnson is reportedly willing to go to the Supreme Court to avoid having to write a letter asking for a delay to Brexit
  • Looking...
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  • European equities are indecisive and overall little changed ahead of US jobs report
  • White House Trade Adviser Navarro reiterated that there will be no small deal with China
  • Beijing is in no hurry to forge a deal, and cites the one secured between US and Japan as a reason for not rushing., SCMP
  • Fed’s Clarida was optimistic on the economy, noted Fed is not on a pre-set course and a standing repo facility will be discussed in future meetings
  • USD is marginally softer thus far, fixed is firmer;...
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  • Asian equities traded with no firm direction after an upbeat performance on Wall Street, ahead of NFP
  • SCMP Editorial piece stated, "Beijing is in no hurry to forge a deal” with the US
  • EU’s Brexit Negotiator Barnier told a private meeting of EU diplomats that UK PM Johnson’s proposals fell far short of his conditions for a deal, sources stated
  • In FX, the DXY is flat, EUR and GBP moved in-step with the Dollar, Antipodeans outperformed
  • Looking ahead, highlights include US NFP and Trade, Baker...
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  • US equity futures are modestly firmer, in a bounce-back from the WTO announcement; note, Germany is closed
  • USTR are to impose 10% tariffs on EU aircraft and 25% on agricultural and industrial goods
  • Fed’s Evans says the ISM-Manufacturing print confirmed the FOMC’s view and is open-minded for the next meeting
  • ·Fixed is firmer as growth concerns grow while DXY remains around 99.0 and somewhat mixed vs. G10 counterparts
  • Looking ahead highlights include US Services and Composite PMIs, US Initial...
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  • Asian equities joined the global stock rout, Mainland China and South Korean markets were closed due to public holidays
  • Hong Kong is reportedly studying a curfew to contain protest violence, according to local press
  • US will impose retaliatory tariffs of 10% on EU aircrafts, 25% on EU agriculture and industrial goods, effective October 18th
  • EU is ready to grant another Article 50 extension even if the letter is not signed by UK PM Johnson, diplomats stated that no European leader has reached the...
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