Chinese markets are on the back foot after....>

CHINA: Chinese markets are on the back foot after a return of risk appetite at

the open saw stocks surge before giving back gains. The CSI300 looks to have

posted a false break above the 3200 level which puts the equity recovery in

jeopardy. 

- USDCNH is back to broadly flat on the day after moving temporarily below the

Jan 11 low and the 200dma following the strong yuan fix. The pair is marginally

back above its 200dma last. 

- Rate markets have seen similar risk off moves with the 10 year bond futures

recovering 30 ticks from its low to keep uptrend support from the Sep lows

intact. 

- No major headlines appear to have sparked the midday reversal in risk

appetite. Attention will now turn to US-China trade talks ahead of PMI data

later in the week.