Global stock markets continued to walk in the sun at night again, with stocks from Europe and Wall Street basking in the warm aftermath of the US-China trade announcements on Friday. After a cautious day yesterday, Asia has followed the leadership of Wall Street, with Asian stock markets usually higher in today's session.
There are of course some notable doubts about the interim trade agreement. A legal document still needs to be drawn up for both parties. Doubts also remain about how China will buy as many agricultural products as they have reportedly agreed from the US. The supposed phase-two talks promise to bring negotiating complexity to another level in 2020. A fundamental clash of doctrines between East and West over the mechanics of capitalism beckons, and I have serious doubts, for example, about whether a legendary "comprehensive" deal is coming all the way next year.
That is, of course, a story for next year and in the meantime, an interim agreement should be bullish for the Asia-Pacific region, more so than any other. Although the deal itself only stops rotting in the global economy, this should in itself enable Asian developing countries to catch up to the first quarter of 2020. It will be helped in no small measure by most central banks in the world that stay in easy money mode.
Those who hope for a weaker dollar will probably be disappointed. US government bond yields rose overnight, and despite the strange setback, US yields will continue to support the strength of the dollar, along with robust economic data.
They were cheerful this morning, indicating a recovery in house prices as a sign of life in the domestic economy. Singapore & # 39; s non-oil exports MoM also recovered this morning by 5.80%. Although still far behind the year, the positive report today emphasizes that Singapore is well placed to recover quickly as confidence increases towards the new year.
US and data will be the highlights of this evening, and both are expected to recover from last month's drops. The decision of Boeing (NYSE 🙂 to temporarily stop the production of 737 Max, however, will be visible in the New Year data.
Shares
Asian markets are usually higher today. The trade-sensitive has increased by 1.0%, has increased by 0.50% and has increased by 1.10% after the Hong King government announced more incentives. The Straits Times is flat and the Australian is down 0.25% after his significant jump yesterday. The positive tone must continue throughout the afternoon and Europe is likely to open higher again.
Currencies
The US dollar is slightly lower in Asia as investors are returning to emerging markets for the time being. fell by 0.15% to 6,940 but seems to mark time until we see a real commercial document on paper.
is the most important mover among the majors and rose this morning by 0.30% to 1.3290. GBP / USD was sold heavily overnight because of speculation that the new government would amend the Brexit law to impose a hard leave date by the end of 2020. It would be an impressive effort to get a comprehensive trade agreement between the EU and the UK within one year. . The possibility of a hard Brexit lite will limit the profit in Sterling until we have more clarity from number 10, possibly already this week.
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