 US-China trade war remains a dominant theme in the global financial markets today. Words from both sides continued to indicate hard line stances. It doesn't quite matter how much close to facts are their rhetorics. What matters most is that neither the US or China is going to back down for now. More importantly, after Trump's double efforts to isolate Huawei, global tech companies are starting to halt supplies to the Chinese telecom giant. Those companies include Intel, Qualcomm, Broadcom, Germany's Infineon. And, even Google is said to halt support on its Android platform. US-China tension will only get worse. Nevertheless, while risk aversion is seen in Europeans stocks while US futures point to lower open, the currency markets shrug it off. Australian Dollar remains the strongest one for now, as lifted by election results over the weekend. New Zealand and Canadian Dollars follow as next strongest. There is no apparent strength in Yen for today. Instead, Dollar, Euro and Yen are so far the weakest. Technically, while Yen is mildly lower today, there is now sign of bottoming in Yen crosses yet. We'd still expect more decline in USD/JPY, EUR/JPY and GBP/JPY ahead. 109.02 in USD/JPY, 122.08 in EUR/JPY and 139.54 in GBP/JPY will be watched for declines resumption. Sterling also looks generally weak too on revival of no-deal Brexit. GBP/USD is staying in near term decline, and EUR/GBP is staying in near term rally. In Europe, currently, FTSE is down -0.84%. DAX is down -1.77%. CAC is down -1.74%. German 10-year yield is up 0.013 at -0.088. Earlier in Asia, Nikkei rose 0.24%. Hong Kong HSI dropped -0.57%. China Shanghai SSE dropped -0.41%. Singapore Strait Times dropped -0.77%. Japan 10-year JGB yield rose 0.008 to -0.047. |
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