 Risk sentiments are rather firm in Asian markets as major indices opened up and are extending gains. UK Prime Minister Theresa May's survival of the leadership challenge is a positive factor. Also, progress and US-China trade talk is another factor. It's reported that China has already purchased more than 1.5m tonnes of US soybeans this week, the first major purchase in six months. And of course there were reports that China is considering to lower auto tariffs from 40% to 15%. The WSJ also reported that China is working on replacing the "Made in China 2025" initiative with something that allows more foreign participations. Focus will now turn to SNB and then ECB rate decision. In the currency markets, Australian Dollar is so far the strongest one for today, followed by Dollar and then Euro. Yen is trading as the weakest one. Sterling follow as the second weakest as yesterday's rebound fades. For the week, Aussie is the strongest one followed by Dollar. But with the exception of GBP/USD, all Dollar and Aussie pairs are limited below last week's high, suggesting lack of follow through momentum. Sterling remains the worst performing one followed by Yen. In other markets, DOW closed up 0.64% overnight. S&P 500 rose 0.54% and NASDAQ added 0.95%. 10 year yield rose 0.027 to 2.906. 3-year (2.783) to 5-year (2771) yield remains inverted. In Asia, at the time of writing, Nikkei is up 0.99%, Hong Kong HSI up 1.33%, China Shanghai SSE up 1.60%, Singapore Strait Times up 0.46%. Japan 10 year JGB yield is up 0.0066 to 0.064. USD/CNH dropped sharply yesterday and it's now at 6.870, comparing to this week's high at 6.922. |
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