Today's news headlines:

‘Mainland China property companies pull back in Hong Kong’. Chinese property companies are scaling back in Hong Kong as the effects of the Evergrande default continue to create liquidity concerns. Demand for premium office space is also dwindling, with rents expected to fall by around 5% this year. Mainland-Chinese firms account for a large portion of property demand in Hong Kong, and China’s zero-Covid policy has been a contributor to this pullback as borders close. (Financial Times)

‘UK-EU trade relationships tumble after Brexit’. Post-Brexit, the UK’s trading relationships with the EU have fallen by almost a third, as increased red tape and more rigorous custom checks have created pressure on smaller companies’ bottom lines. Although exports to the EU have risen to back to pre-Brexit levels, the Office for Budget Responsibility estimates that total imports and exports may have been around 15% higher had the UK remained in the bloc. (Financial Times) 

Today

Asian markets were mixed overnight as mainland-Chinese shares fell following a mass Coronavirus testing rollout in Beijing. US crude oil is hovering around $100 per barrel this morning while the US Dollar Index is marginally higher.

Events

Japan Unemployment Rate: 2.6% (est. 2.7%)
US Durable and Core Durable Goods Orders m/m: 1:30PM
Bank of Canada Deputy Governor Timothy Lane speaks: 1:55PM
US Conference Board (CB) Consumer Confidence: 3:00PM
US Richmond Manufacturing Index: 3:00PM​​​​​​​

Interbank rates:
​​​​​​​
GBP/USD – 1.2719
GBP/EUR – 1.1886
EUR/USD – 1.0695
USD/CAD – 1.2733

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