Morning Call: Equities wilt on fading US-China hopes
Senior Editor, Saxo Bank
Summary: Equities are heading south as hopes for a breakthrough in China-US trade talks disappear over the horizon. Elsewhere, macroeconomic worries are weighing on crude oil and both CAD and SEK have weakened sharply against the dollar.
FX Update: Sterling rises on fiscal stimulus hopes
Most currencies are taking their orders from intermarket signals, as commodities have bounced and risky assets continue to look beyond the Covid-19 virus impact. Some of the first more significant data showing the virus impact outside of China up later this week. Meanwhile, sterling strength is one of the few developments of note within G10 FX.
COT: Euro selling drives dollar long to new 2020 high
Commitments of Traders report covering speculative positions and changes in FX, bonds and stocks in the week to February 11.
Macro Dragon: US back in on Tues, Flash PMIs & Turkey Rate Cuts Week
Macro Dragon = Daily Cross Asset Views. Today we re-highlight the wk ahead; noting the US does not get back in until Tues. the wk will be dominated by a focus on flash PMIs globally, as well as a number of key inflation figures. Central bank wise, apart from Fed speakers - its really going to be all eyes on Turkey to see if they cut more than expected given Erdogan's obsession with lower rates despite elevated inflation. Geopolitical wise - lots of focus on the deflationary ripples from Covid-19, as well as what kind of stimulus (magnitude, time, where) is going to be coming from China. On the US side, Sat 22 Feb will see the Nevada Caucus.
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