Trade amongst market movers today – Danske Bank

Analysts at Danske Bank are expecting that the global markets are likely to stay on alert today on the news from Beijing, as high-level trade talks continue.

Key Quotes

“According to Chinese media, US representatives Steven Mnuchin and Robert Lighthizer will meet President Xi Jinping today. The recent newsflow indicates that the two parties remain far apart from each other. We think this is in part expectation management.”

“Also, we believe focus will remain on the risk of a new partial US government shutdown. At this stage, it seems President Donald Trump will sign the spending bill that Congress has passed this morning. This would avoid another shutdown. Meanwhile, tensions are running high, as the President has indicated he plans to declare a national emergency to get funding for his border wall with Mexico. The deadline is midnight US time.”

“On the data front, today’s highlight is new car registrations in Europe. Bottlenecks in the car sector were one of several Achilles heels for the euro area in Q4 and a continuing rebound in new car registrations would be welcome news. Focus is also set to be on US (manufacturing) data after yesterday’s severe retail sales miss.”