Commentary by Nordea’s chief Asia analyst, Amy Yuan Zhang Zhuang says that the firm maintains their view that neither a yuan devaluation nor dumping of US Treasuries is a valid weapon against US tariffs as they are both associated with certain costs and do not present any clear benefits to China.
Headlines out on Reuters 10 April – we are seeing very negative moves on Russian markets – moves partly emotional, partly market trends Market trends? RTS Index down 5% while other global equity markets on the rise again this week.
Italy Feb industrial production data just out 10 April – -1.8% prev revised up from -1.9% – yy 2.4% v 7.3% prev – WDA yy 2.5% vs 4.7% exp vs 4.4% prev Strong EZ expansion says Nowotny? Not backed by this data or indeed others like it recently.
Headlines via Bloomberg citing a person familiar with the situation The report by Bloomberg says that trade talks broke down last week after the Trump administration demanded that China take steps to curtail support for high-tech industries.
S&P 500 futures are up by more than 1% still on the day Steady as she goes for US equity futures (and European equities for that matter), following the relative calm demeanour that was exuded by China president Xi Jinping in his speech earlier in the day.
Pound buyers still in charge for the moment 10 April EURGBP clung onto 0.8700 yesterday and rallied to 0.8724 but this morning we’ve had another pop below to post 0.8692 and that’s helped GBPUSD up to test 1.4180. Comments from BOE’s McCafferty not doing any harm to the pound’s current bullish tones along with better…
The NZD leads the way again on the day In yesterday’s trading, the kiwi led the charge into the US session and despite stocks ending the day near the lows, it held onto gains and – only behind the loonie.
OCBC Bank’s economist, Barnabas Gan says in a commentary during a presentation Gan says that there is plenty more downside for commodities should trade frictions between the US and China escalate into a full-blown confrontation. He highlights that the risk of losses in metals and oil could be as much as a third.
IEA’s Paris head of oil division Neil Atkinson speaks to Bloomberg TV In its report last month, the IEA said that the US to be the biggest force in the oil market over the next few years – even that it will cover 80% of the world’s oil demand growth.
European equity futures liking the mood after Xi’s speech earlier Solid gains in the futures market from early trades, points to a bright start for the cash equity market later on. That should keep risk sentiment buoyed ahead of US markets later in the day.