The more positive mood from US trading at the end of last week is helping somewhat, but also the fact that we saw a modest drop in the yen against the dollar and that is contributing to a better mood among exporter firms to start the week.
Elsewhere, the mood in Asia is more mixed with the Hang Seng down 0.7% while the Shanghai Composite is up 1.4%. US futures are more flat ahead of European trading.
That is keeping the risk mood more tepid for the time being, with major currencies observing little change in general. The franc is a little lower though to start the day, still coming off fresh five-year highs against the dollar on Thursday last week.
Michael Roth, German Minister of State for Europe in an pinion article in German news magazine Der Spiegel
will be “no business as usual” between the European Union and China following the assertive political moves on Hong Kong
urged fellow EU nations not to “be afraid to lock horns” with Beijing.
referred to China by its autocratic political structure, casting it as a systemic rival that has “unfortunately” challenged Europe’s “foundation of values”
Via South China Morning Post, link here for more (may be gated).
What is deeply worrying is the unpredictability, volatility and desperation of Trump. Driven by his fear of losing the presidential election in November, Trump sees nothing is off the table as far as he is concerned. Anything is possible.
The Trump administration says it’ll “take action” in a matter of days against a wider swathe of Chinese software
US secretary of state Mike Pompeo spoke on Sunday
“These Chinese software companies doing business in the United States, whether it’s TikTok or WeChat – there are countless more . . . are feeding data directly to the Chinese Communist party, their national security apparatus”
“President Trump has said ‘enough’ and we’re going to fix it and so he will take action in the coming days with respect to a broad array of national security risks that are presented by software connected to the Chinese Communist party.”
We might hear more on this when Trump jets back in from his weekend golfing.