 Sterling suffers heavy selling today as after Brexit negotiations between the UK government and opposition Labour formally collapsed. More uncertainties lie ahead as Prime Minister Theresa May will lay our the time line for stepping down, whether her Brexit deal would be approved by the Commons in June or not. On the other hand, sentiments are also weighed down by China's hard stance on trade negotiations with the US. China seems rather uninterested to resume the talks, unless three core issues are resolved, including eliminating all tariffs, the amount of additional purchases and texts of the agreement. It's also part of the reason that's weighing on Chinese, European and US stocks, as well as treasury yields. In the currency markets, Canadian Dollar follows Sterling as the second weakest for today, then Australian. Yen is the strongest, followed by the resilient Euro, and then Dollar. For the week, Yen and Swiss Franc are the strongest, followed by Dollar. Sterling is the weakest, followed by Aussie and Kiwi. In Europe, currently, FTSE is down -0.39%. DAX is down -0.87%. CAC is down -0.50%. German 10-year yield is down -0.022 at -0.113. Earlier in Asia, Nikkei rose 0.89%. Hong Kong HSI dropped -1.16%. China Shanghai SSE dropped -2.48%. Singapore Strait Times dropped -0.77%. Japan 10-year JGB yield rose 0.0047 to -0.055. |
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