China top diplomat calls for US to create favourable conditions for implementation of Phase One trade deal
Uh oh, China is starting to pull out the Phase One trade deal card in light of recent tensions between the two. There are known boundaries that both sides should not cross that may lead to the deal breaking down, so China is making that clear once again.
BOE's Ramsden: We are not actively planning for negative rates
The BOE published a box on negative rates in its yesterday - the first time it has done so - and that is inviting market participants to get used to the idea that policymakers are almost likely to pursue such a measure if the economic recovery falters.
Morgan Stanley moves away from bearish stance on the dollar, turns to "tactically neutral"
There is little argument that the dollar has been on the receiving end of a brutal beating over the past few weeks and the chart is also telling of that:
BOE's Ramsden: Debt, higher borrowing was a necessary response to the pandemic
- Yields in the gilt market are extraordinarily low
- Trends over many years have pushed down rates
Dollar continues to keep firmer on the day, all eyes on the US jobs report later
EUR/USD is down to 1.1820-30 levels from around 1.1845 earlier while GBP/USD is down to levels just under 1.3100 from around 1.3110-20 earlier.
China says TikTok, WeChat are in compliant with US laws and international regulations
The worry here is that Trump's action could spark a fresh wave of retaliation, especially for bigger companies with vested interest in the Chinese market such as Apple and Google.
UK July Halifax house prices +1.6% vs -0.1% m/m prior
Risk aversion stays the course to start the session
US futures are down ~0.4% while Treasury yields are a little lower, with 10-year yields down 1.2 bps to 0.524% currently. Meanwhile, European stocks are also starting to tilt lower after the mixed start with the DAX erasing gains to trade at flat levels.
European equities more mixed at the open today
- Eurostoxx -0.1%
- Germany DAX +0.3%
- France CAC 40 flat
- UK FTSE +0.1%
- Spain IBEX -0.1%
US futures are down by ~0.4% and Treasury yields are also keeping lower, so that reveals more about the risk mood keeping more defensive as the session gets underway.