Market Pulse - Currencies
The pound bounced back at the start of the week even after - in what observers said was a challenge to the Prime Minister - Tory rebels published their alternative to her Brexit plan and despite a weak reading on a widely-followed survey of factory sector conditions.
Central Bank of Russia's recent decision to hike rates does not foreshadow that more interest rate hikes lay ahead, analysts at Sova Capital said.
Central Bank of Russia surprised financial markets on Friday, hiking its main interest rate in response to the recent overshoot of its inflation target on the back of weakness in the rouble and food price inflation, although Governor Elvira Nabiullina had reportedly flagged that possibility a week beforehand.
The Turkish lira was boosted on Monday (USD/TRY -3. 2% on the day at 6. 09) as the US Secretary of State, Michael Pompeo, let slip that the administration would be holding talks with Turkey regarding the release of Pastor Brunson.
Carmaker Volvo has halted its truck assembly lines in Iran over US sanctions that are preventing it from being paid, a company spokesman said on Monday.
US Deputy Attorney General, Rod Rosenstein, tendered his resignation to the White House on Monday, in the belief that President Donald Trump was set to dismiss him.
Europe's single currency bounded higher in mid-afternoon trading on Monday, after European Central Bank chief, Mario Draghi, said that the stable outlook for headline consumer prices masked stronger underlying price pressures.
The Organisation for Co-operation and Development has trimmed its forecasts for world growth for this year and next, cautioning that trade tensions, tighter financial conditions in emerging markets and political risks might further undermine "strong and sustainable" medium-term growth around the world.
Global fund managers topped up their holdings of cash and lowered their allocation to global equities, according to the results of Bank of America-Merrill Lynch's fund manager survey for the month of September, especially towards Emerging Markets and Europe.
The pound was trading on the front foot at the start of the week, helped by news that speculators had pared their 'bearish' bets on 'cable', as traders call the exchange rate between the pound and the US dollar.
Investors will have little choice but to keep their eye on developments on multiple fronts over the coming week, with global trade talks between the US and China, or the lack thereof, likely to be the biggest driver of markets around the world.
The White House is set to announce new tariffs on as many as $200. 0bn-worth of Chinese-made goods, probably towards the start of the coming week.
Sterling finished the session little changed but saw a sizeable amount of volatility as traders were forced to digest yet more sound bites on Brexit from the other side of the Channel, even as they monitored the headlines regarding the situation on global trade and emerging markets.
Germany is in talks with allies France, the UK and the US on joining a possible military deployment in Syria in the event that the Syrian government uses chemical weapons in Idlib, BILD reported.
China's global trade surplus narrowed last month, but widened against the US, with the latter taking some economists by surprise given the trade tariffs recently-imposed by Washington.
Venezuelan foreign minister Jorge Arreaza has accused the White House of planning an intervention and backing military conspiracies on the back of a report that claims senior US officials had met with Venezuelan military officers to plot a coup.
Shares on Wall Street are slipping lower after it was reported that Donald Trump had threatened tariffs on an additional $267. 0bn-worth of Chinese goods on top of those on $200. 0bn-worth which his administration was already mulling and the $50bn-worth which had already gone into effect.
A decision on whether to impose a third round of tariffs on Chinese made goods might not come on Friday, a top official from the Trump administration appeared to indicate.
The European Union’s chief negotiator Michel Barnier had told MPs he was open to discussing alternative Irish customs arrangements in order to secure a Brexit agreement, news that lifted the pound on Friday.
China's stash of foreign exchange reserves was roughly steady last month, but economists believed the monetary authority had likely found an alternate manner of propping up its currency, the yuan; namely by instructing state-owned lenders to sell some of their foreign assets.