Main exchange rates steady

While the impressive recovery in equity markets is continuing, there’s not much change to report in the main exchange rates. The euro continues to hover just below the $1.15 level against the dollar, with sterling also steady against the US currency at just over $1.27. The pound is a touch softer against the euro, trading this morning at about 90p

Equity markets are being boosted by positive soundings surrounding the US and China trade talks, which are being extended into a third day – it’s reported that Trump is keen to strike a deal to give stocks a fillip – with both US and European indices advancing by around 1% yesterday and the latter opening in positive territory this morning

Core bond yields continue to nudge up as stocks move higher. In the US, 10-year yields are trading north of 2.70%, with the market now no longer toying with the idea that the Fed might cut interest rates this year

Late today the Fed publishes the minutes of its December monetary policy meeting, at which it raised interest rates for the 9th time in the current cycle, while it is quiet on the data front with Euro area unemployment and UK labour costs the main releases of note