UNITED STATES

According to a Bloomberg report, the next phase of China-US trade talks will start this week as most of the enforcement mechanisms are “close to done” but still some significant issues to resolve. There are two rounds of talks on the horizon in Beijing today and in Washington on May 8 with issues such as intellectual property, forced technology transfer, non-tariff barriers, agriculture amongst others still up for discussion.

In the equity front, the rally continued with Dow Jones Industrial Average gaining 0.4%, NASDAQ adding 0.19% and S&P 500 also growing by 0.11%. The yield on US 10-YR, however bucked the trend dipping ever so slightly to close at 2.511%

ASIA

Data released on Tuesday morning pointed to slowing growth amongst Chinese manufacturers as the PMI index slipped to 50.1, falling from the previous months level of 50.5. Also, non-manufacturing PMI slowed from 54.8 to 54.3; bringing the composite PMI to 53.4 from 54.8.

On the back of this the Asian key bourses were negatively hit with the HSI, ASX200, KOSPI and NIKKEI all dipping by 0.66%, 0.43%, 0.41%, 0.22% respectively. The impact on the currency was more of a mixed bag with CNY and SGD gaining 0.10% and 0.12% to reach 6.7401 and 1.3629 against the greenback, while the AUD and JPY both shed 0.28% and fell to 0.7036 and 111.38 against the USD.

UNITED KINGDOM

In UK, Jeremy Corbyn the Labour Party leader is facing increased pressure form his political counterparts to promise a second referendum on any Brexit deal, moving away from his confirmatory referendum to a deeper commitment. Also, in the UK Theresa May is facing a challenge from within her own Conservative party after enough members signed a petition opposing her leadership and Brexit strategy in a bid to unseat the PM.

The footsie grew by 0.06% to reach 7,444.78 while the yield on UK 10-YR inched downwards to price at 1.156% on Tuesday morning. In the currency space the GBP gained 0.07% to reach 1.2944 against the USD.

EUROPEAN UNION

The skepticism continues in the Eurozone as German economic confidence fell to its lowest point in 3 years adding to the downward trajectory of economic confidence in the Euro area; a worrying sign of things to come. Finnish CB governor Oli Rehn is lending his voice to the growing concerns, suggesting that slower growth will continue this year and inflation targets will not be met.

The European bourse has had better days as most of the key indexes dipped; the DAX, STOXX600 and the CAC all shed 0.12%, 0.09% and 0.32% respectively. The yield on Bund 10-YR also dipped marginally to -0.004% and FRA 10-YR also fell to 0.3611 on Tuesday morning.

The EUR was trading at an exchange rate of 1.1183 down by 0.04% against the US Dollar.

RUSSIA

Russia announced that yesterday it began sending uncontaminated crude through the Druzhba pipeline to Belarus, in a bid to regularize crude exports to Europe following last week’s debacle. On the corporate front, oil giant Gazprom reported a net income for 2018 FY at 4.3% above analyst estimates with the figure reaching 1.46tn rubles against an estimate of 1.40tn rubles

Russia Index shed 0.43%, while the RUB reached 0.01547 against the USD.