Stocks are higher while the US$ is mixed following the comments at yesterday’s market open from US Treasury Secretary Mnuchin, who said that China will agree to further trade talks, easing fears of a trade war. The main beneficiaries have been the Aud$ and the NZ$, while the Yen has been under some pressure, and Sterling has under-performed again as traders prepared for a heavy data load this week that could determine whether the BOE raises interest rates in 2018. US Yields are more or less unchanged while the metals are a little higher. WTI also settled higher as geopolitical uncertainty rose after weekend elections in Venezuela, viewed as illegitimate, and raised the prospect of US sanctions on the country’s exports. The chance of further US sanctions on Iran also underpinned the price of oil, which rose by 1.3% on the day.
Tuesday looks like being a very quiet one with virtually no data at all, although Cable may see some action following the Inflation Report Hearing, with testimony from Carney/Vieghle et al on the MPC committee, and the PSNBR. The BuBa Monthly Report is also due. Otherwise it would seem to be politics that dominate today’s agenda, with traders more likely looking towards tomorrows FOMC Minutes.
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