Concerns of re-sparking Sino-US dispute.......>

FOREX: Concerns of re-sparking Sino-US dispute knock appetite

- Reports late last week that the US could act on plans to bar Chinese firms

from US capital markets continue to circulate, knocking risk appetite and

pressuring equity futures across the board. Having been on holiday last Friday,

European indices are playing catch-up, with losses of around 3-4% at pixel.

- It was no surprise to see further economic weakness in the European final PMI

data this morning, with low manufacturing activity pressuring the PMI number to

the low 30s for Italy, France and Germany. The EUR is modestly lower, but is

largely in the process of pulling back some of the sharp month-end gains seen

last week.

- JPY is the firmest across G10 so far, with the greenback not far behind on the

generally soft risk sentiment. NOK is the weakest currency as Brent crude

futures are a touch lower, with focus turning to this Thursday's Norges Bank

rate decision.

- March factory orders data and final durable goods for March are the larger

releases Monday. There are no central bank speakers of note.