Entering into US session, Sterling is clearly the weakest for today. Selloff in the Pound accelerates after Labour party formally declared collapse of Brexit talks with the government. No one knows what’s next for Brexit, and not even who’ll be leading the government after Prime Minister Theresa May’s Brexit deal is defeated again in June (highly likely). Canadian Dollar followed as the second weakest and then Australian Dollar.
In addition to Brexit uncertainties, sentiments are weighed down by China’s hard stance on trade negotiation with the US. No further talk is scheduled for now and China seems uninterested to resume the talks. Tensions between US and China has turned from bad to worse after Trump’s double assault on Huawei. Chinese stocks closed below 2900 handle at 2882.30 today, down -2.48%. USD/CNH resumed recent rally and hit as high as 6.9448. Major European stocks are in red. German 10-year yield is back below -0.1 at -0.0117. DOW future is down -200 pts for the moment. Yen is currently the strongest one for today.
In Europe, currently:
- FTSE is down -0.55%, despite selloff in Sterling, which suggests FTSE is indeed rather weak.
- DAX is down -1.22%.
- CAC is down -0.76%.
- German 10-year yield is down -0.0265 at -0.117.
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.
