19th October 2018

Major European indices are mostly lower with Italian banks adversely affected by the EU Commission’s response to the Italian budget

Dollar remains relatively well bid overall, albeit off best levels as the index straddles 96.000

Looking ahead, highlights include, Canadian CPI and Retail sales, US Existing Home Sales, Baker Hughes Rig Count, BoE’s Carney, Fed’s Bostic and Kaplan

ASIA

Asian equity markets were mostly lower following a resumption...

• Asian equity markets were mostly lower following a resumption of the tech-led losses on Wall St
• In FX markets, the greenback remained firm in which the DXY eyed the 96.00 level to the upside as it sustained the post-FOMC minutes support
• EU Commission told Italy in a letter that its 2019 budget is a serious and particularly non-compliant proposal with EU rules
• Looking ahead, highlights include Canadian CPI, US Existing Home Sales, Baker Hughes Rig Count, BoE’s Carney, Fed’s...

European equities are mixed as the region failed to benefit from a slew of earnings

Dollar index has failed to extend recovery gains beyond near term technical resistance around 95.790 and has drifted back towards 95.500

Looking ahead, highlights include, Philly Fed, Fed’s Bullard, Fed’s Quarles, EU leaders’ summit

ASIA

Asian equity markets were downbeat following a lacklustre lead from Wall St where momentum in US stocks stalled as markets focused on mixed earnings and...

• Asian equity markets were downbeat following a lacklustre lead from Wall St where momentum in US stocks stalled as markets focused on mixed earnings and the FOMC minutes
• USD remained firmer overnight after the FOMC minutes stated that further gradual rate hikes would be consistent with a sustained economic expansion
• UK PM May said we have solved most issues but the Northern Ireland backstop remains a problem. Reports suggest May is considering extending the Brexit period
• Looking ahead,...

• Major European bourses are mixed with Germany’s DAX underperforming; European auto sector lower is by over a percent
• Softer than forecast UK CPI has undermined Sterling in the run up to Wednesday’s EU summit on Brexit and pre-dinner speech by PM May
• Looking ahead, highlights include US building permits and housing starts, DoEs, FOMC minutes, BoE’s Cunliffe, ECB’s Praet, Fed’s Brainard, BoE’s Broadbent, EU Leaders Summit and a slew of large cap...

• Asia-Pac equity markets were higher across the board as the region got a tailwind from the earnings-fuelled momentum in the US
• The FX space was quiet overnight amid a lack of tier-1 data and as currency markets consolidated from the prior day’s price action
• EU is open to extending Brexit transition by another year if UK PM May accepts a ‘two-tier’ backstop to avert a border in Northern Ireland
• Looking ahead, highlights include UK and EZ inflation, US building permits...

ASIA

Asian equity markets partially shrugged-off the tech-led losses on Wall St and traded mostly higher as focus shifted on earnings updates. ASX 200 (+0.6%) was led by mining names after the recent strength in gold prices and with Rio Tinto shares supported following its Q3 production update in which iron ore shipments declined Y/Y but the Co. affirmed FY18 shipments at the upper end of its guidance range. Elsewhere, Nikkei 225 (+1.3%) and Japanese exporters coat-tailed on favourable currency moves, while Shanghai...

• Asian equity markets partially shrugged-off the tech-led losses on Wall St and traded mostly higher as focus shifted on earnings updates
• In FX markets, most major pairs were quiet as the DXY consolidated following yesterday’s pressure in which it just about held above 95.00
• European Council President Tusk said Brexit is more complicated than expected and that EU must prepare for no-deal scenario
• Looking ahead, highlights include UK labour market report, German ZEW, US industrial...

• Cautious start to trade this week as Trump hints at further Chinese tariffs.
• An unproductive Brexit weekend with negotiations paused until Wednesday’s summit, with some reports of no deal implementation plans beginning.
• Looking ahead, highlights include US retail sales and NY Fed manufacturing, Canadian Business Outlook, NZ CPI, Italian Budget Submission Deadline

ASIA

Asian equity markets resumed last week’s stock rout as the region failed to take impetus from...

• Asian equity markets resumed last week’s stock rout as the region failed to take impetus from Friday’s rebound on Wall St
• UK and EU negotiators called for a pause in discussions until Wednesday's summit outcome after UK PM May refused to endorse a draft Brexit deal negotiated by officials
• In FX markets, the DXY was slightly firmer and continued its rebound from support at the 95.00 level while GBP/USD tested 1.3100 to the downside
• Looking ahead, highlights include US...

• USD/TRY below 6 but choppy awaiting Pastor Brunson’s Constitutional Court appeal verdict
• Cable also volatile ahead of next week’s key Brexit summit, with big issues still to be resolved
• European equites tentative ahead of key US bank earnings
• Looking ahead, other highlights include, US Import/Export Prices, Uni. of Michigan, Fed’s Evans, Bostic and ECB’s Draghi

ASIA

Asian equities traded mixed as the bourses attempted to mount a...

Asian equities traded mixed as the bourses attempted to mount a recovery following the downbeat lead from Wall St.

BBC's Laura Kuenssberg reported that no real progress was made at yesterday’s cabinet meeting, but discussions will continue

Turkish officials expect the court to release Pastor Brunson on Friday, after NBC reported a secret agreement has been brokered to release the Pastor

Looking ahead, highlights include German CPI (F), IEA Monthly Oil Market Report, US Import/Export...

European stocks taking the lead from US and Asia with significant losses; Stoxx 600 at lowest in 20 months

Mixed reports on an all-UK agreed backstop, with sources suggesting PM May is to ask her cabinet for approval today

Looking ahead, highlights include, US CPI, US weekly jobs and DoEs

ASIA

Asian stocks drowned in a sea of red following the battered lead from Wall St. amid a sell-off in tech stocks where the sector posted its worst day since 2011. Dow and S&P notched their biggest...

Asian stocks drowned in a sea of red following the battered lead from Wall St. after the Dow and S&P notched their biggest one-day drop since early February

Traders cited concerns over prospective earnings (luxury stocks hit yesterday), ongoing trade worries, higher yield environment, whilst some (including Trump and Mnuchin) suggested a mild correction was overdue

UK and EU have reportedly reached an agreement in principle on an all-UK backstop plan, according to sources

Looking ahead,...

Latest reports suggesting progress towards a Brexit deal support a GDP-flippant GBP

European indices largely in the red as focus remains on Italy amidst more budget parliamentary testimonies

Looking ahead, highlights include, US PPI, Wholesale Inventories, APIs, Fed’s Evans and Bostic

ASIA

Asia-Pacific equities traded mixed as the region mimicked the lead from Wall St. where the S&P notched its fourth day of losses while the Nasdaq snapped its three-day losing streak. The Dow...

Asia-Pacific equities traded mixed as the region mimicked the lead from Wall St. where the S&P notched its fourth day of losses while the Nasdaq snapped its three-day losing streak

EU and the UK have made progress in Brexit talks, divorce terms could be settled by Monday, according to reports

Looking ahead, highlights include Norwegian CPI, UK GDP and production, US PPI, Wholesale Inventories, APIs, ECB’s Mersch, BoE’s Haldane, Fed’s Evans and...

• Tria’s Parliamentary budget testimony fails to support BTP’s after suggestion of Italian budget watchdog rejection
• US-China Trade talks on hold unless Xi does not produce a list of concessions as according to US officials
• Looking ahead, highlights include, Fed’s Kaplan, ECB’s Villeroy, Fed’s Evans, BoE’s Broadbent, Fed’s Harker, BoE’s Carney

ASIA

Asia-Pacific stocks traded mixed as the region followed a similar picture...

Asia-Pacific stocks traded mixed as the region followed a similar picture painted on Wall St

FX markets were choppy as the greenback eased to print fresh intraday lows with EUR/USD and GBP/USD testing 1.1500 and 1.3100 to the upside

FT reports, US Officials warned China that Trump will not engage in trade talks with Chinese President Xi at the G20 summit if China does not produce a detailed list of concessions

Looking ahead, highlights include German trade, ECB’s Mersch, Fed’s Kaplan,...

• EUR, EU equities and BTPs hit as Italian budget targets seen as a “serious concern” for the European Commission
• China returns with a RRR cut, but can’t stop the rot for Chinese equities and the CNH
• Looking ahead the highlight is ECB’s Nowotny; NOTE: US Columbus Day is today, US equity markets are open

ASIA

Asian stocks traded on the backfoot as the region mimicked the lead from Wall St. where the S&P 500 posted its worst week in nearly a month...

Asian stocks traded on the backfoot as the region mimicked the lead from Wall St. where the S&P 500 posted its worst week in nearly a month

The Telegraph reports The EU is preparing to offer Theresa May a “supercharged” free trade deal this week but will reject Mrs May’s demands for frictionless tradee

The Telegraph also reports that Brexiteers offered UK PM May a lifeline that will see EU officials based at UK borders

Brazilian far-right candidate Bolsonaro won the first...

GBP gets a lift from EU sources stating a divorce deal is “very close” temporarily breaking 1.3050 to the upside

BTP’s down by over a point as Italy cut GDP growth targets and Salvini maintains his anti-EU tone

EU equities on the back foot as Italy, yields and US-China tensions weigh ahead of NFP

Looking ahead, highlights include, US and Canadian jobs reports, US trade, Baker Hughes, ECB’s de Guindos, Fed’s Kaplan, Williams and Bostic

ASIA

Asia-Pac...

Asian equities trade mixed following a negative lead from the US with sentiment on Wall St. dampened by ongoing trade concerns and US yields

FX markets were little changed overnight with the greenback remaining in a tight range ahead of NFP

Italy's Finance Minister Tria is targeting GDP growth of 1.5% in 2019, 1.6% in 2020, 1.4% in 2021 and confirmed deficit/GDP target of 2.4% in 2019, 2.1% in 2020 and 1.8% in 2021

Looking ahead, highlights include RBI rate decision, US and Canadian jobs...

• US 10-year yields hit 4 year highs as markets react to a hawkish Powell
• Positive vibes from EU sources on the new Irish backstop proposal lifts Brexit spirits and the GBP
• Looking ahead, highlights include, weekly US jobs data, US factory orders, Banxico rate decision, Fed’s Quarles and ECB’s Coeure

ASIA

Asia-Pac stocks traded mostly lower despite the positive lead from Wall St as the effects of rising rates...

• Asia-Pac stocks traded mostly lower despite the positive lead from Wall St as the effects of rising rates spooked investors
• In FX markets, the greenback hit a one-month high following upbeat comments from Fed Chair Powell on the economy
• Italy's government agreed on a 2.4% deficit/GDP target in 2019, 2.1% in 2020 and 1.8% in 2021, PM Conte confirmed
• Looking ahead, highlight include, weekly US jobs data, US factory orders,...

• Italian Economy Minister tries to tame budget excesses ahead of key meeting
• BTPs firm but off peaks as Di Maio maintains citizens income demands
• Looking ahead, highlight include, US services PMI, US ADP, ISM non-mfg, Fed’s Barkin, Harker, Bullard, Brainard and Mester