Market News & Analysis

Market Brief: Awaiting US-China Trade Deal Outcome


FX Brief:

  • AUD and CAD are the weakest majors on reports that China don’t want to discuss industrial policy reform of government subsidies, creating yet another setback for the much-hyped trade deal.
    AUD/USD has pared most of Friday’s gains and the Japanese yen was slightly bid, seeing AUD/JPY as the largest mover of the day and shedding nearly -0.6% at the low of the session, and currently down -0.3% at the time of writing.
  • AUD/USD was also weighed down by another weak construction PMI print. At 42.6 it marks the 13th consecutive month in decline, down from 44.6 previously.
  • Fed member Esther George says they may have to reconsider rates if consumer confidence diminishes and that she’s waiting to see if the latest round of tariffs have weighed on consumer spending.
  • A second whistle blower has come forward against Donald Trump, who alleges to have first-hand knowledge of Trump attempting to get Ukraine to investigate a political rival.

Equity Brief:

  • The current positive performances seen in Singapore’s STI and Australia’s ASX 200 have taken place on the backdrop of a tense week ahead as high-level U.S-China trade talks resume in Washington on Thurs and Fri ahead of a planned increase in tariffs to 30% on US$250 billion worth of Chinese goods on 15 Oct.
  • Bloomberg has reported that Chinese officials have indicated China is reluctant to agree to a broad trade deal as proposed by U.S. President Trump and will be not be willing to discuss commitments on reforming Chinese industrial policy or government subsidies towards SOEs (state owned enterprises); the sticking points that have caused previous negotiation talks to break down.
  • Hong Kong anti-government protestors have continued to stage mass protests on the street against the HKSAR government’s invocation of an emergency law that has banned the usage of masks in public which has triggered a backlash. The Hong Kong stock market is closed for a public holiday today and will resume trading tomorrow with the local China stock market after a week-long break to celebrate China’s National Day.
  • The S&P 500 E-Mini futures has dipped by -0.39% in today’s Asia session to print an intraday low of 2928 after a rally of 1.42% recorded on last Fri, 07 Oct 2019 on the hopes of more dovish actions from the U.S. central bank.

Matt Simpson and Kelvin Wong both contributed to this article

Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.