Trump roils markets

Comments by Donald Trump regarding China and trade sent markets into a bit of a tailspin yesterday although the main currencies pairs weren’t hugely affected. Hence the dollar continues to trade at its lows of week against the euro at just under $1.11, while it has lost just a little ground against the pound to trade at around $1.30.  All of this leaves the euro-sterling rate largely unchanged at 85p

Trump says he has “no deadline” for agreeing a trade deal with China and that he likes “the idea of waiting until after the (US) election for the deal”, while at the same time claiming that “they (China) want to make a deal right now”. In any event, his remarks prompted a swift reaction in markets with US stocks immediately selling off and core bond yields heading south (falling by up to 10bps in the case of 10-year yields)

ECB member de Cos says the central bank’s recently implemented package of stimulus measures “will support the economic recovery in the euro area, and along with it, the sustained convergence of inflation toward our target in the medium term”

The construction PMI in the UK rose slightly in November but remained in contraction territory below the 50 level for a 7th consecutive month

Data due today includes services PMIs in the Euro Area, UK and the US, while the latest ADP employment report is scheduled in the US also