• Major European bourses are firmer this morning (Euro Stoxx 50 +0.8%) as sentiment is lifted on a number of ongoing political & macro factors
• Hong Kong Leader Lam has withdrawn the Extradition Bill, which has sparked some notable outperformance in the Hang Seng
• Fed’s Bullard said a 50bp cut would align with expectations and aggressive action is needed, while Rosengren said no immediate Fed action is needed if data remains on track
• Looking ahead, highlights include US Trade, Canadian Trade, BoC...

• Asian equity markets eventually traded mostly higher as headwinds from Wall St were eventually counterbalanced by regional data
• UK PM Johnson threatened a snap election after Parliament voted to approve a motion to seize control of Parliamentary time to try and block a no deal
• Italian 5SM members backed the formation of new government with PD following online vote
• Fed's Bullard said a 50bps cut would align the Fed with market expectations and that the policy rate is too high
• Looking ahead,...

• European indices are in negative territory as sentiment is subdued on reports that the US & China are struggling to agree a schedule for September’s talks
• RBA left rates unchanged at 1.0% and maintained their wait and see approach
• UK Parliamentarians return to Westminster as Brexit remains the key focus for UK assets
• Looking ahead, highlights include US Construction Spending & ISM Manufacturing PMI, UK Parliament’s return, vote on incoming ECB President Lagarde, Fed’s...

• Asian equity markets traded indecisively following the US holiday and reports the US and China are struggling to set a meeting for trade talks this month
• UK PM Johnson warned if lawmakers vote for another Brexit delay on Tuesday, there will be a vote for a General Election on Wednesday
• RBA kept rates unchanged at the record low of 1.00% and noted the global economy remained reasonable
• Looking ahead, highlights include Swiss CPI, UK Construction PMI, EZ PPI, US Construction Spending & ISM...

• Asian equity markets traded mostly negatively after the 15% US tariffs on about USD 112bln of Chinese goods went into effect
• UK PM Johnson reportedly issued an ultimatum to Tory rebels that they would be expelled from the party if they joined forces with Labour leader Corbyn to halt a no-deal Brexit
• In FX, the DXY was slightly softer, USD/JPY initially slipped to below 106.00 but then gradually recovered
• Looking ahead, highlights include EZ...

• European indices are set to end the month on a high, as sentiment remains strong on a lack of fresh trade newsflow
• ECB's Lautenschlager says it is much too early for a huge package and APP is a last resort, largely echoing ECB’s Knot
• USD is firmer vs. most G10 counterparts while the Fixed complex paints a mixed/little changed picture
• Looking ahead, highlights include US Core PCE & Chicago PMI, Canadian GDP

ASIA-PAC

Asian equity markets headed into...

• Asian equity markets headed into month-end higher across the board after the tumultuous US-China trade saga took a positive turn
• UK House of Commons Speaker Bercow has reportedly been in contact with Tory rebels whilst on holiday this week regarding plans to stop PM Johnson from suspending Parliament
• In FX, DXY traded steady around 98.50, EUR/USD remains subdued, GBP/USD languished below 1.2200
• Looking ahead, highlights include German Retail Sales, EZ CPI (Flash) & Unemployment Rate, US Core PCE...

• European Indices are firmer this morning as risk sentiment was boosted by constructive US-China comments
• Recent optimism follows Navarro saying it is unlikely anything quick will happen with trade talks
• USD is mixed vs. its peers, while BTPs are firmer but off of peaks after Italian President Mattarella gave Conte a mandate to form a new government
• Looking ahead, highlights include, US GDP (2nd Estimate), Core PCE Prices & Initial Jobless Claims, Banxico Minutes, Fed’s Daly, supply from the...

   Asian equities traded mostly lower after failing to sustain the positive lead from their counterparts in the US

·        US President Trump said he could do a quick deal with China and be a hero

·        UK PM Johnson's Brexit advisor Frost reportedly told EU officials that the government wanted a deal and downplayed the prorogation...

• European bourses are softer with the exception of the FTSE 100 on Sterling weakness as prorogation becomes possible
• PM Johnson is attempting to prorogue parliament from September 9th until October 14th , leaving around a two week period to prevent a no-deal Brexit
• Italy’s PD party have backed Leader Zingaretti’s request for a mandate to form a coalition, Italian 10yr yield at record lows
• Looking ahead, highlights include, DoEs, Fed Beige Book, Fed’s Barkin & US USD 41bln 5yr...

• Asian equity markets struggled for direction after the subdued performance on Wall St, where major indices failed to sustain initial gains
• DXY rests above 98.00 in a mild breakout from the prior day’s flat performance, while its major counterparts were lacklustre
• Italian Deputy PM Di Maio said the 5-Star leadership will support a new government only if party members approve it through an online vote planned by next week
• WTI crude futures are firmer with the gains exacerbated by a much larger than...

• European indices are mixed wih Italy’s FTSE MIB outperforming on coalition positioning
• Italy’s 5-Star Movement have suspended talks with PD unless they agree to have Conte as the coalitions PM
• In FX markets, USD has modestly pulled back and remains below 98.00, while Sterling is supported by improved Brexit deal prospects
• Looking ahead, highlights include US Consumer Confidence, Fed Discount Rate Minutes, BoE’s Tenreyro, ECB’s de Guindos & supply the...

• Asian stocks were higher as they followed suit to the rebound across their global peers amid a more conciliatory tone from US President Trump
• US President Trump suggested that negotiations with China will begin shortly and thinks a deal will be reached
• Trump was also optimistic about reaching a deal with EU and was open to meeting Iran President Rouhani under the right circumstances
• Italy's 5-Star and PD were reportedly on track towards an agreement where Conte can return as PM according to two PD...

26th August 2019 

·        A plethora of US-China comments thus far has resulted in choppy risk sentiment, overall Trump has been constructive though China remains negative

·        US President Trump stated that the sides held talks over the weekend though, China denied all knowledge of this and Trump added that anything is possible in the context of delaying planned...

• Asian equity markets tracked last Friday’s hefty losses on Wall Street and the continued weakness in US index futures at the reopen due to the escalation in the US-China trade war
• US President Trump announced on Friday he is to raise tariffs on China by another 5ppts on the current and incoming tariffs
• China Global Times Editor stated that China is seriously preparing for a scenario in which China-US trade relations further deteriorate
• In FX...

• European bourses are firmer this morning in-line with the cautious gains overnight ahead of the main Jackson Hole event today of Fed’s Powell
• USD is firmer vs most G10 counterparts particularly Sterling as backstop optimism fades, though NZD outperforms on RBNZ comments overnight
• China Global Times Editor Hu Xijin says "Based on what I know, China will take further countermeasures in response to US tariffs on USD 300 billion Chinese goods. Beijing will soon unveil a plan of imposing retaliatory tariffs on...

• Asian equity markets traded with cautious gains as participants await Fed Chair Powell’s speech and after the lack of conviction on Wall St.
• In FX markets, the greenback extended above the 98.00 level, EUR/USD was contained in a tight range, USD/JPY and JPY-crosses edged mild gains and NZD/USD firmed after comments from RBNZ Governor Orr
• UK Tory Remainers who are intent on stopping a no-deal are reportedly attempting to delay Brexit, according to...

• Core European bourses are marginally softer this morning as sentiment took a downturn in-spite of strong EZ data
• Chinese Commerce Ministry said China will have to retaliate if US persists on current course, adding that any new measures will lead to escalation, unreliable entity list will be published soon
• Italian President Mattarella is meeting with parties today, announcement on a potential PD/5-Star deal expected after 16:00BST today
• USD is mixed, with safe haven JPY remaining firm and antipodeans...

• FOMC Minutes stated a couple of policymakers would have preferred a 50bps rate cut to address low inflation and that several favoured maintaining rate
• A reference to the “mid-cycle adjustment” suggests that Fed Chair Powell's use of the phrase was not an off-the-cuff remark
• German Chancellor Merkel said she would welcome a negotiated Brexit deal but is ready for all outcomes and challenged UK PM Johnson to come up with a solution to avert a no-deal...

• European indices are firmer this morning as risk sentiment recovers somewhat, to the detriment of fixed income and safe havens
• Fed’s Daly stated she does not think we are heading for a recession while Fed’s Kashkari believes Fed should use forward guidance now and will argue for cuts in September
• USD is mixed vs. G10 counterparts though is outperforming safe havens on sentiment and Sterling ahead of UK PM Johnson's meeting with German Chancellor Merkel
• Looking ahead, highlights include Canadian CPI,...

• Asian equity markets traded subdued as the region conformed to the dampened global risk tone with markets cautious ahead of looming FOMC risk
• EU sources reportedly believe UK PM Johnson is pulling British officials out of EU meetings which hints that the PM is not serious about achieving a Brexit deal
• Italian PM Conte submitted his resignation to Italian President Mattarella. Conte was then asked by President Mattarella to stay as a caretaker...

• European bourses are little changed this morning after a mixed Asia-Pac handover and little in the way of catalysts since then
• DXY has inched closer to August highs with Sterling subdued and safe havens deriving some safe haven impetus
• Italian PM Conte to address the senate at 14:00BST/09:00ET on the ongoing political crisis
• Looking ahead, highlights include Italian PM Conte addressing the Senate, Fed’s Quarles & Daly

ASIA-PAC

Asian equity markets traded mixed as the...

• Asian equity markets traded mostly higher as the region benefitted from the mild tailwind in the US
• UK PM Johnson told EU's Tusk in a letter he hopes the UK will leave the EU with a deal, but the backstop must be scrapped
• DXY held on to recent gains although price action was uneventful ahead of this week’s FOMC Minutes and Jackson Hole symposium
• Looking ahead, highlights include Norwegian GDP, APIs, Italian PM Conte addressing the Senate, Fed’s Quarles
• Earnings: Persimmon, Home Depot,...

• European indices (+0.9%) are benefiting from the improved risk sentiment thus far, to the detriment of the fixed income complex and safe havens
• PBoC announced that it will make the Loan Prime Rate the new Benchmark Reference Rate, which will be linked to the Medium-term Lending Facility rate
• US President Trump reiterated he is not ready to make a deal with China, reports stated that the Trump administration will grant Huawei an additional 90-day extension, a decision is to be made today
• Looking...

• European indices are higher across the board, the FTSE 100 saw a delayed start on technical issues and EU banking names saw a sudden sell-off
• US President Trump doesn’t believe China will retaliate on tariffs, and a call is scheduled with Chinese PM XI
• Iran has not given any assurances on Grace 1 not going to Syria, saying it was not heading there originally
• Looking ahead, highlights include US Building Permits & Housing Starts, University of Michigan Sentiment, OPEC Monthly Oil Market Report,...