Citi

European Open

Optimism was the prevalent theme as USD traded flat and risk assets saw upticks. US equities (S&P futures) and oil ticked slightly higher as a continuation from the NY session. Asian equities were also in the green, with KOSPI, HSI and NKY seeing around 0.9%, 0.9% and 1.3% upticks respectively. The Asian morning was light on data, with IDR seeing trade balance come in higher than expected USD4370mn (vs USD3865mn consensus), although USDIDR only saw a slight dip. While not particularly market moving, we note news today around the easing of Chinese mortgages for the rest of the year, which seems to hint at the government’s slight concern around Evergrande.

Looking ahead, we see a day that is light on data as well, with the US seeing retail sales (13:30 BST), U. Mich. sentiment (15:00 BST) and the Fed’s Williams in a monetary policy panel (17:20 BST). On the EM front, we will sight ILS CPI (12:00 BST), and economic activity data for BRL (13:00 BST) and PEN (16:00 BST).

USD and UST traded flat on the Asian morning, where optimism was the prevalent theme. Risk assets saw upticks, with US equities (S&P futures) and oil ticking higher as a continuation from the NY session. Asian equities were also in the green, with KOSPI, HSI and NKY seeing around 0.9%, 0.9% and 1.3% upticks respectively.

Credit Agricole

Asia overnight

The risk-on trading mentality continued in Asia. While China left its MLF rate unchanged, it eased curbs on home loans issued by its largest banks; according to our China economist, this will help support demand from first-home buyers and in turn developers’ liquidity. S&P 500 futures and almost all Asian bourses were trading higher at the time of writing. In G10 FX, the JPY remained under downward pressure and was the underperformer during the session. The NZD and EUR led the way in rallying against the JPY.