Another round of tit for tat!

Today’s news headlines:

‘China retaliates against US by closing American consulate in Chengdu’. China has notified the US embassy in Beijing that it has revoked the Chengdu consulate’s license to operate as a ‘necessary response to the unreasonable actions of the United States’. Tensions between the two nations have risen to the highest level in decades with the trade war threatening to manifest into a diplomatic and tech war. Meanwhile, the US has charged four Chinese nationals with visa fraud for allegedly hiding affiliations with the Chinese military. (Financial Times)

‘Michel Barnier warns"no progress" made on key issues in Brexit talks’. The EU’s chief Brexit negotiator said yesterday that the two sides were still at odds over a couple of ‘essential topics’, and trade talks could be heading for failure unless the UK changes its stance. Barnier pointed towards Britain’s refusal to commit to conditions of open and fair competition as well as a balanced agreement on fisheries. (Financial Times)

Today's events, rates, and data 

  • Heightened tensions between the US and China resulted in significant flow into the safe-haven Japanese Yen, which rose to a one-month high. European and US stock futures fell overnight along with a slide in Asian equities.

Today's events

UK Retail Sales: 13.9% vs 12.3% previously
French Flash Services PMI: 57.8 vs 50.7 previously 
French Flash Manufacturing PMI: 52.0 vs 52.3 previously 
German Flash Services PMI: 56.7 vs 47.3 previously 
German Flash Manufacturing PMI: 50.0 vs 45.2 previously 
Eurozone Flash Services/Manufacturing PMI: 9.00am
UK Flash Services/Manufacturing PMI: 9.30am
US Flash Services/Manufacturing PMI: 2.45pm

Interbank rates:

GBP/USD: 1.2742
GBP/EUR: 1.0974
EUR/USD: 1.1612
USD/CAD: 1.3415