Pound Winning, Kiwi Losing

Market Reviews

Pound has significantly reinforced on the potential Brexit trade deal. Swiss Franc, however, remained the strongest. Loonie is strong as well. Aussie and Kiwi remain the weakest. S&P 500 grew 0.57% to the maximum of 2914.04. NASDAQ was up 0.99% at 8109.69 high. DOW increased 0.23% at 26124.57. 5 year yield rose 0.006 to 2.780, 10 year yield was flat at 2.884 and 30 year yield reduced -0.013 at 3.021. Nikkei slightly eased, lifting only 0.17%. Hong Kong HSI lowered -0.61%, China Shanghai SSE dropped -0.81%, Singapore Strait Times was down -0.71%.

Michel Barnier (EU chief negotiator) reported that the European Union is ready to offer a unique partnership with UK. He said: “we are prepared to offer Britain a partnership such as there never has been with any other third country.” And, “we respect Britain’s red lines scrupulously. In return, they must respect what we are”. “Single market means single market … There is no single market a la carte,” he added. Dominic Raab (Brexit Minister) confirmed that EU-UK Brexit deal is near at hand.

Meanwhile, Canada-U.S. negotiation is seemed to be going well so far. The deal is expected to be reached by the end of this week. Donald Trump stated: “they (Canada) want to be part of the deal, and we gave until Friday and I think we’re probably on track. We’ll see what happens, but in any event, things are working out very well.” Canada’s Prime Minister Justin Trudeau told: “there is a possibility of getting there by Friday”. He then added that “it is only a possibility, because it will hinge on whether or not there is ultimately a good deal for Canada.” Trudeau concluded: “no NAFTA deal is better than a bad NAFTA deal.”

New Zealand ANZ business confidence declined -5 points to -50 in August. Activity Outlook remained at 3.8. Building permits were down -10.3% mom in July. Australian building approvals reduced -5.2% mom in July. Private capital expenditure fell -2.5% qoq in the second quarter. Japan retail sales increased 1.5% yoy in July.

Today, Swiss will present KOF economic barometer, Germany will publish jobless data and Consumer Price Index, Eurozone will announce confidence figures, UK will release mortgage approvals and M4, Canada will feature Gross Domestic Product and US will release personal income and spending.