False alarm

Today's news headlines:

‘Beijing quashes market rumours of quicker end to zero-Covid policy’. After rumours last week that Beijing was considering softening its stance on the country’s strict zero-Covid restrictions, Chinese stocks listed on the Hong Kong Stock Exchange enjoyed their best week in over seven years. Meanwhile, shares listed in Shanghai experienced their most significant weekly gain in over two years. The National Health Commission of China, however, reiterated at a press conference on Saturday the country’s determination to eliminate Covid-19 as the northern hemisphere enters the winter flu season, hinting that it will be some time before we see any easing of restrictions in Beijing. This announcement came as China recorded a six-month high of 4420 daily covid infections on the weekend. (Financial Times)

‘UK house prices show steepest decline since February 2021’. Official Halifax data released this morning showed a fall in UK house prices for the second consecutive month, taking the annual rate from a rise of 9.8% in September to 8.3% the next month. Average house prices fell back by 0.4% through October as soaring borrowing costs took their toll on the UK property market. Consumers are becoming increasingly financially cautious as mortgage approvals and demand for borrowing show a steady decline, resulting in forecasts of a 10% fall in house prices in the UK next year. (Financial Times)


Today

After China’s National Health Commission squashed any hope of any imminent Covid-19 restriction cutbacks, the Nikkei and Hang Seng are set to experience increased volatility throughout the day. Markets are already beginning to price in a Beijing reopening early next year after Goldman Sachs said on Sunday that Chinese stocks could rally 20% ahead of an expected restriction easing. 

Events

UK Halifax HPI m/m (Oct): -0.4% vs -0.1% previously
EU Sentix Investor Confidence: 9:30AM
FOMC Members Susan Collins and Loretta Mester speak: 8:40PM
Eurogroup Meetings: All day
​​​​​​​
Interbank rates*:

GBP/USD: 1.1300
GBP/EUR: 1.1380
EUR/USD: 0.9930
USD/CAD: 1.3540

 

Please contact your Dealer about any upcoming FX requirements you may have, or call +44 (0)20 3465 8200. 

*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.