• BTP yields hit 4 year highs and FTSE MIB underperforms after Borghi suggests Italy would be better off without the EUR
• GBP the G10 laggard after poor PMI’s and negative Brexit commentary via the Tory conference
• Looking ahead highlights include, US APIs and potential comments from BoE’s Haskel, Fed’s Quarles, ECB’s Villeroy, Fed’s Barkin, Powell, and BoE’s Haldane

ASIA

Asian stocks...

• Asian stocks traded mostly lower as the upbeat sentiment from the USMCA deal seen on Wall St. faded away
• UK PM May is preparing to limit Britain's ability to strike free-trade deals after Brexit in a significant concession to the EU aimed at breaking the deadlock in negotiations
• The RBA stood pat on rates as expected and stated that low interest rates are supporting the economy, while business conditions and the outlook for the labour market remain...

• US-Canada-Mexico agreed to new NAFTA named the USMCA; CAD and MXN the major outperformers in FX
• FTSE MIB the outperforming bourse as Italy sees some reprieve
• Looking ahead, highlights include, US mfg PMIs, US construction spending, ISM mfg PMI, Fed’s Bostic, Kashkari, Rosengren, BoE’s Tenreyro

• US and Canada said in an official statement that they have reached a trade deal with Mexico in an agreement dubbed the USMCA (US-Mexico-Canada Agreement)
• Asian stocks traded mixed following a rather uneventful lead from Wall St. on Friday. Hong Kong and Mainland China closed due to public holidays
• In FX, focus has been on JPY weakness and CAD strength with the latter hitting 4-month highs vs. USD
• Looking ahead, highlights include...

• Italian budget fallout continues, with BTP yields above 3.15%, FTSE MIB Bank Index down over 5%, and EUR underperforming
• GBP undermined by benign UK GDP and more Brexit-related weakness in business investment
• Looking ahead, highlights include US personal income, core PCE price index, Canadian GDP, Chicago PMI, Uni. of Michigan and a slew of central bank speakers

• Asian stocks traded mostly higher following a spur in risk-appetite and an upbeat lead on Wall St
• The Italian government has reached agreement on 2.4% deficit to GDP target for 2019
• Looking ahead, highlights include German jobs, UK GDP, EZ CPI, US personal income, core PCE price index, Canadian GDP, Chicago PMI, Uni. of Michigan and a slew of central bank speakers

• Italian budget dispute takes centre stage as Finance Minister and League/5SM 2% conflict comes to the fray
• BTP roam toward 3% to the upside in early European trade and FTSE MIB leading the losses in equities
• Looking ahead, highlights include, German CPI, US GDP, Durables, Italian budget presentation and a slew of central bank speakers

• FOMC hiked rates as expected, Fed Chair Powell provided an upbeat tone on the US economy, dot plots suggested no more hikes after 2020
• UK PM May is reportedly losing support for a no-deal Brexit if EU discussions fail, according to sources
• Recent reports suggest the Italian Government may postpone their 2019 budget plan meeting while the league are set to join 5SM in seeking a 2.4% deficit target
• Looking ahead, highlights include...

• FX markets rangy and equities directionless in a quiet European morning ahead of the FOMC
• BTP’s back over 127.00 as Italian budget updates surface ahead of the official release on Thursday
• Looking ahead, highlights include, Czech, US and NZ interest rate decisions, US new home sales, ECB’s Draghi and Fed’s Powell

• Asian equities traded mostly higher despite a mixed lead from Wall St. where the Dow and S&P closed with losses
• In FX markets, antipodeans stole the limelight as an improvement in New Zealand’s business outlook and activity lifted NZD/USD to near weekly highs
• UK PM May again states that it is not in the national interest to hold another general election or second referendum
• Looking ahead, highlights include, Czech, US...

• Oil breaks USD 82.00 to the upside and hits 4 year highs as OPEC’s rhetoric continues to lift the market
• ECB’s Praet highlights there was nothing new in Draghi’s speech yesterday, EURUSD vigorously falls to as low as 1.1732
• Looking ahead, highlights include, US consumer confidence, APIs, BoE’s Vleighe, ECB’s Praet, Makuch, Coeure, supply from the US

• Asian stocks traded mixed with the region indecisive following a lacklustre lead from Wall St. where both S&P 500 and Dow slipped from all-time highs
• According to reports, the UK cabinet is said to give PM May's Brexit plan two weeks for progress
• Looking ahead highlights include US consumer confidence, APIs, BoE’s Vleighe, ECB’s Praet, Makuch, Coeure, supply from the US

• Oil up by over 2% as JMMC takes no heed to Trump’s calls for lower oil prices
• Risk sentiment takes a hit as China cancels trade talks with the US; European bourses all in the red
• Looking ahead the highlights are ECB’s Draghi speaking and the UK Cabinet meeting at 14:00BST

• Asian stocks traded lower (South Korea, Japan, Taiwan and mainland China away due to public holidays) with risk sentiment dampened after China cancelled trade talks with the US
• UK PM May’s aides have reportedly begun contingency planning for a snap election in November to save the Brexit talks; later denied by Raab
• Looking ahead, highlights include German IFO and ECB’s Draghi

• European equities pay no heed to poor EZ PMIs; set for over 2% weekly gain as trade war fear dissipate
• Sterling sliding on subpar statements after Salzburg summit
• Looking ahead, highlights include, US PMIs, Canadian CPI and retail sales, Baker Hughes Rig Count and quad witching

Asian equity markets traded higher as the region took impetus from the rally in US where the Nasdaq outperformed on a rebound in tech

• NOK gets hit by a flatter Norges Bank rate path than expected, SNB a lacklustre event
• UK Retail Sales beats with previous all revised higher, Cable lifted above 1.3200
• Looking ahead, highlights include, SARB rate decision, US weekly jobs, Philly Fed, Existing Home Sales, ECB’s Weidmann and Praet, supply from the US

• Asian equity markets eventually traded mixed despite the early tailwind from US where strength in blue chip financials fuelled the outperformance in the DJIA
• UK Chequers plan was said to cause divide among EU leaders with some countries calling for EU to engage with the UK and with others unwilling to make concessions
• Looking ahead, highlights include, SNB, Norges, SARB rate decisions, US weekly jobs, Philly Fed, Existing Home Sales, ECB’s Weidmann and...

• Trade war concerns continue to abate as European and Asian equites extend on the previous sessions gains
• UK CPI beats expectations and upbeat Brexit commentary helps Cable improve on 8 week highs
• Looking ahead, highlights include, US Building Permits, Housing Starts, DoEs, BCB rate decision, NZ GDP and ECB’s Draghi

• Asian equity markets traded firmer following the gains in the US. Chinese bourses lifted by support measures announced by Premier Li
• In Brexit, UK PM May claims that an exit deal is virtually agreed, whilst Barnier states the EU is ready to improve its proposal on Northern Ireland
• Looking ahead, highlights include UK CPI, US Building Permits, Housing Starts, DoEs, BCB rate decision, NZ GDP, BoE’s Haldane, ECB’s Draghi and supply from...

• European equities are firmer shruging off US-China tariff action, with 10% seen not as severe as anticipated
• Brent jumps over 1% as Saudi Arabia is said to be happy with oil over USD 80/bbl
• Looking ahead, highlights include, Hungary’s Interest Rate Decision and GDT

• The US confirmed tariffs on USD 200bln of Chinese imports effective September 24th which will begin at 10% and increase to 25% at year end. Trump vowed further tariffs if China retaliates to these measures
• China Vice Premier Liu He was said to convene a tariff response meeting, while there were separate reports suggested that China will likely not send a delegation to Washington for trade discussions
• Looking ahead, highlights include Hungarian rate decision,...

17th September 2018

• Asian equity markets began the week with a subdued tone after Trump reportedly told advisers to proceed with tariffs on a further USD 200bln of Chinese goods
• China reportedly may not participate in planned trade discussions with the US if the Trump administration goes ahead with additional tariffs
• The EU is secretly preparing to accept a frictionless Irish border after Brexit in a move that raises the prospect of PM May striking a deal by the end of the...

14th September 2018