Today's news headlines: 

‘US orders families of embassy staff to leave Ukraine’. As tensions between Russia and Ukraine continue to rumble on, the US has advised the families of its embassy staff to leave the country with Russian military action threatening to come at any time. The US has considered reinforcing border defences, with Pentagon reports suggesting 5,000 US troops could be deployed, although no official comment has yet been made. (Financial Times)

‘China’s extended naval reach in western Pacific fuels Taiwan tensions’. Over the past year, China has been flexing its naval power just off the coast of Taiwan and slowly increasing its presence in the region. These developments have meant the US has tried to develop deeper lines of communication with Japan to avoid attacks on Taiwan. According to some military experts, China’s navy has been performing drills that replicate real-time war scenarios. (Financial Times)

Today

Asia-Pacific stocks failed to recover overnight after a broad market sell-off last week, one of the worst since the Coronavirus pandemic began. US yields are higher in early trade, while West Texas Intermediate holds below $86.

Events

German flash Manufacturing and Services Purchasing Managers’ Index: 8:30AM
UK flash Manufacturing and Services PMI: 9:30AM
US flash Manufacturing and Services PMI: 2:45PM
German Bundesbank Monthly Report: Tentative 

Interbank rates:

GBP/USD – 1.3551
GBP/EUR – 1.1969
EUR/USD – 1.1321
USD/CAD – 1.2571

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