 Global markets stage a strong rebound today with help from talk of global stimulus. China has already indicated that it will reform rate system to lower lending cost. There were also talks that Germany is considering stimulus measures. Markets response well to US decision to delay Huawei sanctions for another 90 days. In the currency markets, Swiss Franc is the weakest one for today so far, followed by Sterling and Yen. Euro is the strongest, followed by Canadian and then Dollar. Technically, Euro recovers generally today, including against Swiss Franc. But there is no clear sign of bottoming in the common currency. Near term levels to watch including 1.1130 minor resistance in EUR/USD, 0.9194 in EUR/GBP, 1.0922 in EUR/CHF. As long as these levels hold, further decline is still in favor. Meanwhile, Sterling's recovery stays to lose momentum. It's still a bit far, but 1.2014 support in GBP/USD and 126.54 support in GBP/JPY are the focuses. Break will resume recent decline. In Europe, FTSE is up 1.18%. DAX is up 1.47%. CAC is up 1.37%. German 10-yer yield is up 0.044 at -0.640. Earlier in Asia, Nikkei rose 0.71%. Hong Kong HSI rose 2.17%. China Shanghai SSE rose 2.10%. Singapore Strait Times rose 0.43%. Japan 10-year JGB yield rose 0.0065 to -0.23. |
