Daily Market Briefing, Asia Pacific

• Positive tone. Solid start to the week for risk assets. Equities rose, as did copper. USD softer. NZD (+1.3%) & AUD (+1%) outperform.• Macro trends. China data showed signs of improving momentum. Topline US retail sales weaker than expected. Growth trends weighing on the USD.• Central banks. Over coming days the Bank of Japan, US Fed, & Bank of England meet. Will the US Fed be more focused on inflation or growth? Global Trends Last Friday’s burst of market optimism has carried over into the new week. The equity market rebound extended with the US S&P500 (+0.6%) recording its...

• Positive vibes. Prospect of more China stimulus & German fiscal spending supported sentiment. Equities rose on Friday, as did AUD & NZD.• Tariff impacts. US tariff effects showing up in the data. US consumer sentiment tumbled, while inflation expectations jumped up.• Event Radar. A busy week ahead. China data & US retail sales (Today), BoJ (Weds), US Fed, AU jobs, NZ GDP, & BoE (all Thurs) on the schedule. Global Trends Volatility in markets continued on Friday, although this time risk appetite improved over the final trading session of the week. Equities rose with US indices leading the charge...

• Improved sentiment. After a difficult spell risk appetite improved a little overnight. US equities rose, as did bond yields. AUD & NZD edged higher.• Tariff news. After the US confirmed tariffs on steel & aluminium imports the EU unveiled countermeasures. Canada also announced more steps.• US CPI. Inflation cooled in the US. This supported risk markets. But the data doesn’t yet capture impacts from higher duties on US imports. Global Trends Global trade tensions remain an underlying focus for markets, but despite more tit-for-tat moves over the past 24hrs fragile risk sentiment improved a little after data showed US...

• US jobs. Lukewarm US jobs report didn’t stir the market pot. US equities rose, as did bond yields. EUR extended its upswing. AUD drifted back.• EUR strength. Prospect of more EU fiscal spending is supporting the EUR. AUD/EUR & AUD/GBP down near multi-year lows. Is too much priced in?• Event Radar. US CPI (Weds) due. Bank of Canada (Weds night) expected to cut rates again. News about US tariffs & EU fiscal spending also likely. Global Trends After a volatile spell, particularly in European assets, last week ended without any new significant market ructions. The monthly US jobs report...