Trade War – The market mood improved on fresh US-Sino trade optimism, after the US Treasury Sec. Mnuchin said trade talks with China will resume in two weeks. Further, China’s announcing new waivers to buy US soybeans offered a fresh boost to risk. Upbeat US PMI report also buoyed the sentiment.
China stocks led the Asian equities higher while the Wall Street futures and Treasury yields traded with moderate gains. The US dollar was largely unchanged vs. the Euro, pound and gold. Although it slipped against the Antipodeans, despite China saying that it’s in no rush to take big policy easing steps.
The Kiwi was the strongest amongst the G10 currencies while the Swiss Franc emerged the main laggard, followed by the Yen. Uncertainty over US-Japan trade deal and poor Japanese PMI kept the JPY bulls at bay.
Brexit: The UK Supreme Court will say whether PM Johnson acted unlawfully when he suspended parliament just weeks. The ruling is due at 0930 GMT. Meanwhile, the EU-UK leaders conveyed “no breakthrough” at the UN General Assembly (UNGA) in New York.
Oil prices dropped on oil demand growth concerns amid global economic slowdown and Saudi oil supplies restoration early next week.
