UNITED STATES

According to Myron Brilliant from the US Chamber of Commerce the deal between China and the US is 90% done but the 10% which is the trickiest part is within sight. Both Trump and XI are determined to reach a reasonable deal and that is pertinent.

US 10Y Yield +3bps this morning back to 2.50% & Brent almost at the $70 level, stocks showed a mixed reaction to the positive news with DOW -0.30%, S&P held constant and NASDAQ gained 0.25%, while Brent also climbed closer to the $70 mark.

ASIA

Pacific Investment Management Company (PIMCO) believe there is headroom in the rally currently being seen in emerging Asia’s local bonds, despite the market already reporting back-to-back quarterly gains. Rate cuts on the horizon in Singapore and Indonesia would increase the appeal of longer-term notes, due to the yield pickup on shorter-tenured bonds.

The service sector in Japan held steady in March, providing a ray of hope in amidst concerns of a Chinese economic slowdown and a weaker global growth.

On the Chinese horizon, the HK Hang Seng showed the best performance in the Asian market, gaining 0.9% to reach a 9-month peak, while Japan’s TOPIX also appreciated by 0.6%. Mainland China’s CSI continued the trend adding 0.4% reaching its 12-month peak.

UNITED KINGDOM

According to Michel Barnier, EU’s chief Brexit negotiator, a no-deal outcome is looking more likely as the clock ticks away. He went further to suggest that a strong justification would be required from the UK if they seek a long extension of the Brexit process.

The news that Theresa May offered to work with Jeremy Corbyn to end the Brexit stalemate; which potentially paves the way for a softer Brexit saw the pound trade 0.1% higher growing from 1.1213 to reach 1.1204, the yield on UKT’s slid from 1.0209-1.0028%.

EUROPEAN UNION

The French parliament is set open a debate today on a bill intended to strengthen security around its 5G networks. The idea of this bill is not a witch-hunt at Huawei; but will reflect the nations push for more reciprocal access to Chinese markets.

There was controlled optimism in the EU as the Europe-wide Stoxx 600 gained 0.35% with the Xetra Dax 30 up 0.6%. The EUR slid from 1.1213 to 1.1204 against the greenback.