 Brexit and China are the two main themes in the markets today. For now Yen is the strongest one so far followed by Swiss Franc. Risk aversion is triggered by terrible trade data from China which intensified worries over slow down. Both imports and expects contracted in the fastest pace since 2016 in December. It's rather clearly that the Chinese economy is heavily affected by trade war with the US. Nevertheless, there is no panic selling in the global stock markets. Investor seem to be hopeful on some goods news from Chinese Vice Premier Liu He's visit to Washington later in the month. Sterling is the third strongest on increasing chance of no Brexit at all. Ahead of tomorrow's vote in the parliament, UK Prime Minister Theresa May stepped her rhetorics. She warned that there are some MPs who wish to delay or even stop Brexit. And she urged MPs to vote to deliver what people decided in the referendum back in 2016. EU sent a "reassurance" letter to May today, pledging to work on a post-Brexit agreement by end of 2020 deadline to avoid triggering the backstop "in the most solemn manner". But it's unsure how such assurances could change the mind of those who already got a position. That is, those who believed no-deal Brexit is closest to what people want, and those who want no Brexit at all. Staying in the currency markets, Australian Dollar lead commodity currencies lower on risk aversion. Dollar is mixed as the record US government shutdown drags into the fourth week with no end in sight. In other markets, FTSE is currently down -0.95%, DAX is down -0.52%, CAC is down -0.64%. German 10 year yield is down -0.0211 at 0.219. Earlier today, Hong Kong HSI dropped -1.38%, China Shanghai SSE dropped -0.71%, Singapore Strait Times dropped -0.79%. Japan was on holiday. |
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