Actions remain positive as G20 approaches

Wednesday at 07:00 GMT

What do you want to know

• Investors are looking at the warning of Trump's senior advisor on business progress
• Hopes remain for progress in relations at G20 presidential meeting
• European equities to rise after gains in China
• The dollar index is holding around its 2018 highs before the Fed Chairman's speech
• Jay Powell to address the Economic Club of New York at 5 pm London time
• The price of oil is recovering with Brent recovering more than $ 61

Hot topic

Investors have re-entered the Asian and European stock markets, but they should continue to measure their political rhetoric in the run-up to the G20 summit.

The CSI 300 index of the main Shanghai and Shenzhen shares rose 1.3%, while in Hong Kong, the Hang Seng China Enterprises index rose 0.9%. According to the opening calls, the London FTSE 100 and the Frankfurt Xetra Dax 30 will increase by around 0.5% each.

Haven's badets were contained, with the Japanese yen losing 0.1% to 113.83 yen against the dollar and gold remaining stable at $ 1,214 per ounce.

The business model came after a statement by Larry Kudlow, Donald Trump's chief economic advisor, that Chinese President Xi Jinping had to "take a step forward and come up with new ideas" to break the stalemate when two leaders would meet.

Markets have already announced bad news of the G20, but if the two executives moved away, the result would be "negative for China, but also for the United States, emerging Asia and the United States. Europe, which is already slowing down, "said Natixis senior Trinh Nguyen. economist.

"Apart from Turkey and Argentina, China is the weakest stock market since the beginning of the year. [US dollar terms]although Asian economies with a high exposure to trade and China, such as South Korea, Singapore, Malaysia, Thailand and Vietnam, are also in conflict. The United States is not spared either, "said Ms. Nguyen.

While both parties are likely to engage in a dialogue in Buenos Aires, a "major breakthrough is unlikely," said Tai Hui, strategist for JPMorgan Asset Management. "There is simply not enough time for both parties to resolve their differences when discussions between the middle and senior levels resumed in early November."

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Hong Kong's Hang Seng general index rose 0.9%, with most segments in positive territory and tech stocks up 2.6%. The Tokyo Topix advanced 0.5%, supported by gains in the telecommunications and technology sectors.

In Sydney, equities held up less well, with the S & P / ASX 200 losing 0.1%, while the recent collapse of Chinese steel futures – which also affected iron and steel prices. coal – continued to weigh on miners.

Wall Street ended up after hesitating, investors weighing on the prospects for trade talks between the US and China, and following the US president's Monday threat to expand tariffs on imports into from China.

Forex and fixed income

Sovereign and foreign exchange markets were stable, with the US dollar index maintaining its previous day's gains at 97,399.

The Chinese onshore renminbi exchange rate, which operates within a 2% trading range on both sides of the daily mid-point set by the People's Bank of China, was slightly lower at Rmb 6.9535 per dollar. The offshore rate was unchanged at Rmb6.9511.

The pound was down 0.1% to $ 1.2737 while Theresa May was fighting to convince the British parliament to back a Brexit deal with the EU.

In the sovereign debt markets, the 10-year US Treasury yield remained virtually unchanged at 3.059%. On the Australian equivalent, it was 1 basis point lower at 2.618%, while the yield on 10-year Japanese government bonds remained unchanged at 0.083%.

Basic products

Oil prices rose but were still far from recovering all the ground lost during the rout last week. Brent rose 1% to $ 60.86 a barrel, while West Texas Intermediate rose 1.1% to $ 52.11.

Futures on iron ore on China's Dalian Commodity Exchange rose 1.1%. However, iron ore prices remain under widespread pressure as the outlook for the Chinese steel industry weakens, ANZ badysts said.

"Prices for steel rebar fell by about 16% this month in China, which is expected to have a negative impact on steel mill profitability as winter production slows, raising fears that Steel production no longer drops than expected, "badysts said.

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