Newsquawk Rundown, Daily Podcast

Asian stocks traded mostly negative as the relief rally fizzled out in the region with investors quick to book their recent profits.

In FX markets, USD softened against its major counterparts with the DXY back below the 97.00 level amid a decline in US yields, which benefitted both EUR/USD and GBP/USD

Italy's Deputy PMs Di Maio and Salvini are said to be open to a possible 2% deficit. However, Italian press noted that a budget deficit at 2% is not low...

US President Trump and Chinese President Xi Jinping announced a truce at the G20 in which the US agreed to delay hiking tariffs on USD 200bln of Chinese goods to 25% for 90 days

Russia President Putin spoke with Saudi Arabia’s Crown Prince in which they agreed to extend the OPEC+ agreement, although haven’t decided on the precise volume of production cuts

Looking ahead, highlights include US Markit Manufacturing PMIs, Fed’s Quarles,...

US President Trump and Chinese President Xi Jinping announced a truce at the G20 in which the US agreed to delay hiking tariffs on USD 200bln of Chinese goods to 25% for 90 days

Russia President Putin spoke with Saudi Arabia’s Crown Prince in which they agreed to extend the OPEC+ agreement, although haven’t decided on the precise volume of production cuts

Italian PM Conte is reportedly preparing for a deficit of 1.9%-2.0%, while Italian Deputy...

Italian QQ GDP contraction weighs on BTP’s as Bund-BTP spread retests 300bps

Double trouble for Deutsche bank as MS downgrades EU banking stocks and probe enters second day

EU equity indices largely in the red and core EU bonds in the green in skittish trade ahead of G20

Looking ahead, highlights include, Canadian GDP, Chicago PMI, ECB's Draghi, Mersch & Coeure, Fed's Williams...

Asian stocks traded mixed amid a cautious global risk tone ahead of the US-China showdown at the G20 and as participants digested disappointing Chinese PMI data

FOMC Minutes stated almost all policy makers said rate hikes likely warranted "fairly soon" and it could be appropriate at future meetings to emphasise more greatly on data

UK PM May is turning to Eurosceptics in her cabinet to launch a last gasp effort to sell her compromise Brexit deal,...

European equities (Eurostoxx 50 +0.1%) initially piggybacked on the optimism seen on Wall St and during the Asia-Pac session as perceived dovish rhetoric by Fed Chair Powell continues to guide markets.

Chinese President Xi is expected to offer greater market access and fewer subsidies to state firms when he meets with US President Trump at the G20

Looking ahead the highlights are, German National CPI, US PCE Price Index and Jobless data, FOMC Minutes,...

Asian stocks traded mostly positive after risk appetite was ignited by Fed Chair Powell’s dovish comments which spurred hopes the Fed may begin to slow down on its hiking cycle

In FX markets, the USD was pressured post-Powell with the DXY back below 97.00 which led EUR/USD and GBP/USD to reclaim the 1.1300 and 1.2800 handles respectively

EU could give Italy more time before triggering the Excessive Deficit Procedure (EDP); according to La Repubblica

Looking ahead, highlights...

European equities (Eurostoxx 50 +0.3%) have held on to opening gains seen in the wake of the upbeat US and Asia-Pac sessions, despite lingering trade concerns.

EU Commission will begin disciplinary action on Italy regarding its debt before Christmas; but Italy remain optimistic that a deal can be struck with the EC

Saudi Energy Minister Al Falih said that Saudi cannot and will not reduce output on their own.

Looking ahead,...

Asian equity markets traded mostly positive following a similar lead from Wall St. but with the session initially mired by lingering trade uncertainty

White House Economic Advisor Kudlow said President Trump could hike tariffs if no constructive talks occur at G20, however, Trump remains open to a deal

UK PM May is said to have backed down regarding attempts to stop lawmakers from making changes to her Brexit plan

EU Commission...

US President Trump said he still intends to go ahead with raising tariffs on China imports from 10% to 25% and that it was highly unlikely he would accept China’s request to refrain from the increase.

Italy's League economic advisor Siri says Italy are considering reducing the budget deficit to 2.2-2.3%

Senior UK lawmaker Fallon says it may be possible to delay the date the UK leaves the EU to negotiate a better deal.

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