Taking the first step
Today's news headlines:
‘Joe Biden calls Xi Jinping in bid to reset strained relations’. Overnight, Joe Biden held his second call with Xi Jinping in an attempt to improve US-China relations after previous meetings failed to break the impasse. Biden underscored the US’s interest in a peaceful and prosperous Indo-Pacific region while the pair discussed not allowing competition to veer into conflict. The two nations differ on a slew of global issues, but one official noted that the two leaders ‘have an ability to be candid, honest and frank with each other,’ leaving the door open to progress. The next step could be an in-person meeting at next month’s G20. (Financial Times)
‘ECB to slow bond-buying as Europe’s economy improves’. Yesterday, the European Central Bank indicated that it would buy fewer bonds as the Eurozone economy continues to recover. The ECB’s decision to move to ‘a moderately lower pace’ in its €1.85tn emergency purchase programme led to increased demand in European bonds, with yields in the German and Italian 10-year falling. Analysts called the move a recalibration, rather than outright tapering, as signalled by the Federal Reserve and Bank of England. (Financial Times)
Asian stock rose overnight, buoyed by a boost in Chinese technology shares. US and European equity futures also begin higher this morning, providing some relief from this week's global economic growth concerns.
UK Gross Domestic Product m/m: 0.1% vs 1.0% previously
UK Industrial Production: 1.2% vs -0.7% previously
ECB President Christine Lagarde speaks: 10.30AM
Canada Employment Change: 1.30PM
Canada Unemployment Rate: 1.30PM
US Producer Price Index and Core PPI m/m: 1.30PM
GBP/USD - 1.3860
GBP/EUR - 1.1715
EUR/USD - 1.1830
USD/CAD - 1.2640
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