Activity in the global stock markets remained relatively subdued, with US posting a mixed close overnight and Asian markets slipping modestly lower today. Despite China’s 50bps Reserve Requirement Ratio cut taking effect, expected to inject over USD 138B into the banking system, investor reaction has been muted. The cautious tone reflects lingering concerns over the global trade outlook, which continues to overshadow stimulus measures and upbeat economic data. Trade-related uncertainty remains a key drag on sentiment, with APEC group issuing a stark warning about the deteriorating outlook. At its 2025 trade ministers meeting in South Korea, APEC projected regional exports to grow by just 0.4% this year, sharply down from 5.7% in 2024. The group also downgraded its regional economic growth forecast to 2.6%, from 3.3% previously, citing weakening external demand, particularly in manufacturing and consumer goods, as well as rising policy uncertainty across trade and services sectors. In the currency markets, Yen and Swiss Franc are the strongest performer today so far, benefiting from mild pullback in risk-on sentiment and likely some short covering after recent weakness. Aussie is gaining ground as well, lifted by a stronger-than-expected employment report, which suggests that while the Reserve Bank of Australia is still on track for a rate cut next week, a more aggressive easing path may be off the table for now. Conversely, Dollar is the weakest major today, although the downside lacks conviction so far. Loonie and Kiwi are also under some mild pressure. Euro and Pound are holding steady, awaiting further catalysts, with the UK GDP report due in the European session. ..... |