Today's news headlines:

‘US tells allies China signalled openness to providing Russia with military support’. According to US intelligence, Russia has approached China for military weaponry to support the country’s invasion of Ukraine. These developments have created some uncertainty in the White House, with the defence secretary suggesting similar sanctions on China could be implemented if a material relationship emerges regarding the supply of weapons. (Financial Times)

‘UK to scrap remaining Covid travel restrictions’. The UK has moved to scale back all Coronavirus travel restrictions from 4:00AM on Friday. Passenger locator forms and the requirement for unvaccinated travellers to take a test will be scrapped. Several travel companies, including British Airways, will also abandon the requirement for passengers to wear a mask for the duration of their journey. (Financial Times)

Today

Asian indices fell for a second day overnight as Coronavirus infections continue to rise in mainland China. European markets have opened lower this morning, with the FTSE 100 down 1.30%. WTI crude oil is trading below $100 per barrel in early trade as commodity prices move lower.

Events

China Retail Sales y/y: 6.7% (est. 3.0%)
China Industrial Production y/y: 7.5% (est. 4.0%)
China Unemployment Rate: 5.5% (est. 5.1%)
UK Unemployment Rate: 3.9% (est. 4.0%)
Eurozone ZEW Economic Sentiment: 10:00AM
German ZEW Economic Sentiment: 10:00AM
US Producer Price Index and Core PPI m/m: 12:30PM
US Empire State Manufacturing Index: 12:30PM
European Central Bank President Christine Lagarde speaks: 3:15PM

Interbank rates:

GBP/USD – 1.3026
GBP/EUR – 1.1830
EUR/USD – 1.1011
USD/CAD – 1.2841

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