Asian stocks slightly corrected this morning following Monday`s rally when indices had gained more than 3%. Hang Seng is losing 0.3%, CSI is down by 0.6% after HSBC shares slipped as banks’ profits missed expectations for 2018. However, trade talks optimism remains as the low-level talks will continue today and higher-level talks are due Thursday and Friday.


The US markets were closed yesterday because of a public holiday – President’s Day.


The US-EU trade tensions came to the fore as the EU vowed to take measures if the US would place its tariffs on imported vehicles. The EU might refuse to allow purchases of American soy and LNG if any duties were to be placed. EUR slid to 1.1301 while the yield on 10Y DBR rose to 0.116% from 0.108%.


Jean-Claude Juncker told Stuttgarter Zeitung the European Union wouldn’t oppose a delay to the UK’s exit date. UK and EU officials are working on a new agreement regarding the Irish backstop. Finally, British PM Theresa May has continued to oppose internal opposition within the Conservative Party towards removing a no-deal option from the negotiating table.


The Ruble slightly advanced to 66.25 per USD level on a quiet trading session yesterday, Firmer oil prices and a stable global backdrop gave support to the Russian currency. Sovereign Eurobonds as well as corporates mostly remained unchanged.


On the Latam front, US President Trump called on the Venezuelan military to drop support for Nicolas Maduro. In Brazil, President Bolsonaro fired a key political ally amid a campaign funding scandal.

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