Bracing for the second wave

Today’s news headlines:

‘Beijing braces for coronavirus second wave as city shuts market’. China’s political hub has shuttered its largest fruit and vegetable supply market along with nearby residential districts after dozens of new cases of the coronavirus prompted fears of a resurgence of the pandemic in the country. A city of more than 20m people, Beijing enforced some of China’s strictest measures at the beginning of the pandemic and had gone more than 50 days without a new case until the latest outbreak. China has adopted a zero-tolerance stance on new cases, with lockdown restrictions often trapping millions of people. (Financial Times)

‘Johnson seeks to galvanise Brexit talks with EU Chiefs’. In a call later today, the UK’s Prime Minister will press towards progress in talks with the EU over the state of Britain’s future relationship with the bloc. Officials have said that Johnson will push towards getting a trade deal reached over the summer, while reiterating that he is prepared to walk away if the EU is unwilling to compromise. Meanwhile, EU officials have stated that they will not sacrifice their economic interest for the sake of a deal. (Financial Times)

Today's events, rates, and data 

  • Global stocks and riskier assets in general began the week on the back foot after a jump in new infections in the US and China sparked fears of a resurgence of the pandemic. European and American equity futures fell, while investors piled into safe-haven US treasuries. WTI and Brent Crude also dipped along with risk currencies. The US Dollar rose.

Today's events

Chinese Fixed Asset Investment: -6.3% vs -10.3% previously
Chinese Industrial Production: 4.4% vs 3.9% previously
Canadian Manufacturing Sales: 1.30pm
US Empire State Manufacturing Index: 1.30pm
FOMC Member Robert Kaplan Speaks: 4.00pm

Interbank rates:

GBP/USD: 1.2465
GBP/EUR: 1.1092
EUR/USD: 1.1237
USD/CAD: 1.3667