Today's news headlines:
‘Covid zero returns to Chinese city rumoured to be reopening’. Covid concerns returned in China overnight, with lockdowns announced in the city of Shijiazhuang. Residents have been ordered to stay at home for five days as case numbers begin to spike as the government still looks unlikely to abandon its Covid zero policy despite trials being run in the city to abandon the practice. Beijing also reported its first deaths from Covid in six months. (Bloomberg)
‘UK Brexit debate returns with Sunak under pressure on immigrants’. The Confederation of British Industry warned that the UK’s unwillingness to bring in the necessary workers to plug the employment gap could push the UK economy into stagflation. The UK is still in difficult waters with the EU as the Northern Ireland protocol continues to hamper UK trade as businesses face increased red tape. Prime Minister Rishi Sunak will be speaking at the CBI’s annual conference this morning. (Bloomberg)
Stocks are lower this morning as China introduces tighter Coronavirus measures, and the Dollar Index is trading 50 basis points higher. US Treasuries and UK gilt yields are lower across the board in early trading while oil prices decline.
German PPI MoM (Oct): -4.2% (est. 0.6%)
UK Monetary Policy Committee member Jon Cunliffe speaks: 9:05AM
German Bundesbank President Joachim Nagel speaks: 5:30PM
GBP/USD – 1.1824
GBP/EUR – 1.1523
EUR/USD – 1.0260
USD/CAD – 1.3415
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*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.